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Oneok Inc. (OKE) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Oneok Inc. (OKE - Free Report) closed at $73.35, marking a +2.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%.

The natural gas company's stock has dropped by 2.98% in the past month, falling short of the Oils-Energy sector's gain of 1.33% and the S&P 500's gain of 2.09%.

The upcoming earnings release of Oneok Inc. will be of great interest to investors. On that day, Oneok Inc. is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 22.88%. Meanwhile, our latest consensus estimate is calling for revenue of $9.31 billion, up 85.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.48 per share and a revenue of $35.71 billion, demonstrating changes of +6% and +64.58%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Oneok Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% lower. Oneok Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Oneok Inc. is presently being traded at a Forward P/E ratio of 13.11. This indicates a premium in contrast to its industry's Forward P/E of 11.81.

Meanwhile, OKE's PEG ratio is currently 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Production Pipeline - MLB industry had an average PEG ratio of 1.34.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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