During the recent trading sessions stock of Kinder Morgan, Inc. (NYSE:KMI) was gathering the crowd in the stock market. Many experts agree that the truth about a stock is best reflected in the way it moves on the chart. For this stock, the chart has a lot to say about future performance.
How has the stock performed recently?
Kinder Morgan, Inc. (NYSE:KMI) in the last month has increased +1.94%. Shares are now down -12.12% over the past year, underperforming the broad market by -171.93% and underperformed a peer group of similar companies by -410%. After the latest session, which saw the stock close at a price of $19.44, KMI sits -16.78% below its 52-week high. Kinder Morgan, Inc. (NYSE:KMI) has been trading in a bearish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that KMI may be headed in the future. To forecast a stock’s future performance, analysts use momentum indicators, which take into account the size and speed of these price movements. As momentum begins to slow, it may be a sign that a recent trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for KMI is 52.22%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 70.49%, tells a different story, and suggests that KMI currently trades in overbought territory.
What do the trading volumes reveal?
In addition to price, analysts use volume trends to predict future performance. The level of trading activity in a stock is often a good proxy for the level of interest and enthusiasm for the name within the investment community. A sudden increase in activity can be a sign that investors are trading in anticipation of a catalyst. Kinder Morgan, Inc. (KMI) average trading volume of 9,520,370 during the past month is 19.07% below its average volume over the past year, indicating that investors have been less active than usual in the stock in recent times.
What do the analysts think?
KMI is currently undervalued by -22.24% relative to the average 1-year price target of $25.00 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.10, which implies that analysts are generally neutral in their outlook for KMI over the next year.
How risky is the stock?
When predicting the future performance for a stock, it’s also important to take into account risk. To do this, analysts often use a stock’s beta, which measures the stock’s volatility relative to the overall market.
Kinder Morgan, Inc. (NYSE:KMI) has a beta of 0.64, compared to a beta of 1 for the market, which implies that the stock’s price movements are less extreme than the market as a whole. KMI therefore has a below average level of market risk. During the past couple of weeks, KMI average daily volatility was 11.75%, which is 6.98 percentage points lower than the average volatility over the past 100 days.