Oneok Inc. (OKE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Oneok Inc. (OKE) closed at $59.48, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.
Coming into today, shares of the natural gas company had lost 13.74% in the past month. In that same time, the Oils-Energy sector lost 8%, while the S&P 500 lost 1.48%.
Oneok Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.01, up 131.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, up 2.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.43 per share and revenue of $22.3 billion, which would represent changes of +41.41% 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 13.07% higher within the past month. Oneok Inc. is currently a Zacks Rank #2 (Buy).
In terms of valuation, Oneok Inc. is currently trading at a Forward P/E ratio of 10.8. For comparison, its industry has an average Forward P/E of 10.35, which means Oneok Inc. is trading at a premium to the group.
It is also worth noting that OKE currently has a PEG ratio of 1.24. 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. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 4.3 as of yesterday's close.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% 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.
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