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Oneok Inc. (OKE) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

Oneok Inc. (OKE) closed the most recent trading day at $58.63, moving +0.17% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the natural gas company had gained 0.88% over the past month, outpacing the Utilities sector's loss of 0.7% and the S&P 500's loss of 5.39% in that time.

Oneok Inc. will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2022. On that day, Oneok Inc. is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 28.99%. Our most recent consensus estimate is calling for quarterly revenue of $6.88 billion, up 167.83% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Oneok Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. Oneok Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Oneok Inc.'s current valuation metrics, including its Forward P/E ratio of 15.54. For comparison, its industry has an average Forward P/E of 16, which means Oneok Inc. is trading at a discount to the group.

Also, we should mention that OKE has a PEG ratio of 1.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. OKE's industry had an average PEG ratio of 2.6 as of yesterday's close.

The Utility - Gas Distribution industry is part of the Utilities sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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