Oneok Inc. (OKE) closed the most recent trading day at $66.99, moving +1.04% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Prior to today's trading, shares of the natural gas company had gained 11.47% over the past month. This has outpaced the Oils-Energy sector's gain of 5.13% and the S&P 500's gain of 3.31% in that time.
Oneok Inc. will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. On that day, Oneok Inc. is projected to report earnings of $2.15 per share, which would represent year-over-year growth of 147.13%. Meanwhile, our latest consensus estimate is calling for revenue of $5.56 billion, up 2.13% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.26 per share and revenue of $22.3 billion, which would represent changes of +36.98% and -0.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Oneok Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Oneok Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Oneok Inc. is holding a Forward P/E ratio of 12.6. This represents a premium compared to its industry's average Forward P/E of 11.16.
Also, we should mention that OKE has a PEG ratio of 1.66. 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. The Oil and Gas - Production Pipeline - MLB was holding an average PEG ratio of 2.81 at yesterday's closing price.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.
To follow OKE in the coming trading sessions, be sure to utilize Zacks.com.
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