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OGE Energy Corporation (OGE - Free Report) , a Zacks Rank #1 (Strong Buy) stock, is a long-term stock market winner within the Zacks Utilities sector. OGE has been a substantial beneficiary from the energy surge over the past year. The company sports a ‘B’ rating for our Zacks Momentum Style Score, indicating a strong likelihood that the stock propels higher on the powerful combination of positive earnings estimate revisions and stock price performance.
In a sign of strength, OGE recently eclipsed its all-time high before experiencing a mild pullback during the last week. This has created a great buying opportunity for the stock as it continues to gain from an overall uptrend in both utilities and energy. The company’s longevity and continued stock price ascent speak to management’s ability to adapt to the ever-changing market landscape.
OGE is a component of the Zacks Utility – Electric Power industry group, which currently ranks in the top 38% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Historical research studies suggest that approximately half of a stock’s future price appreciation is due to its industry grouping. By targeting stocks contained within the top industry groups, we can dramatically improve our odds of success.
Company Description
OGE Energy operates as a domestic energy services provider, offering physical delivery and related services for electricity, natural gas, and crude oil. The company generates, distributes and sells electric energy, providing retail service to nearly 900,000 customers. OGE is the parent company of Oklahoma Gas and Electric Company.
OGE maintains electric generation capacity fueled by low-sulfur coal and natural gas as well as wind and solar sources. The utility company is recognized as a leader in smart grid technology as it prepares for an electric vehicle program that will include a public charging infrastructure and advanced LED street and security lighting.
OGE Energy is Oklahoma’s largest electric utility company and also operates a multitude of transmission systems in western Arkansas. OGE was founded in 1902 and is headquartered in Oklahoma City, OK.
Recent Earnings and Future Estimates
OGE has surpassed earnings estimates several times over the past year. The energy provider most recently reported fourth-quarter EPS back in February of $1.59, earning $319.2 million during the period. This represented a 488.9% surge from the same quarter in the prior year. Adjusted for non-recurring gains, earnings came to 27 cents per share.
The utility company has delivered an average earnings surprise of 24.07% over the past four quarters. OGE is scheduled to report its Q1 earnings results on May 5th. Analysts are expecting quarterly EPS of $1.25, which would translate to 380.77% growth relative to the same quarter in 2021.
OGE has also witnessed recent positive earnings estimate revisions for the current year. Analysts have revised 2022 earnings estimates upward by +29.11% in the past 60 days. The Zacks Consensus EPS Estimate now stands at $2.75, reflecting potential growth of 16.53% relative to last year.
Let’s Get Technical
OGE has continued its winning ways over the past few months while the market has been in correction mode. This is the kind of stock we want to include in our portfolio – one with both strong fundamentals as well as technicals. The stock has trended very well over the last 12 months, and we can see below that the 200-day moving average (red line) served as support multiple times in the past year.
Image Source: StockCharts
Both the 50-day (blue line) and 200-day moving average lines are sloping up and the stock continues to make a series of new 52-week highs. While OGE has pulled back slightly in recent trading sessions, the stock is looking to find support and a push back to new all-time highs may be just around the corner. Cautious investors may feel hesitant about investing in a stock that has come this far, but the fact is this elite company is still outperforming.
Other Factors to Consider
Despite the impressive performance, OGE remains relatively undervalued, irrespective of the metric used:
Image Source: Zacks Investment Research
The utility company also boasts a strong track record in terms of dividend payments, having steadily increased its dividend over the past nine years. OGE currently pays a $1.64 annual dividend, equating to a 3.94% dividend yield.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. And as we know, OGE Energy has witnessed positive revisions as of late. As long as this trend remains intact (and OGE continues to post earnings beats), the stock should continue its bullish run this year.
Bottom Line
With a robust earnings history and an improving future outlook, OGE Energy represents a great opportunity. The Zacks Rank #1 (Strong Buy) stock is a compelling investment with an attractive dividend yield and strong price momentum.
Solid institutional buying and a high-performing industry group should continue to provide a tailwind for the stock price. Recent positive earnings estimate revisions will help to provide a cushion during any potential market decline. If you’re looking for a way to diversify your portfolio, make sure to put OGE on your shortlist.
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Bull of the Day: OGE Energy Corp. (OGE)
OGE Energy Corporation (OGE - Free Report) , a Zacks Rank #1 (Strong Buy) stock, is a long-term stock market winner within the Zacks Utilities sector. OGE has been a substantial beneficiary from the energy surge over the past year. The company sports a ‘B’ rating for our Zacks Momentum Style Score, indicating a strong likelihood that the stock propels higher on the powerful combination of positive earnings estimate revisions and stock price performance.
In a sign of strength, OGE recently eclipsed its all-time high before experiencing a mild pullback during the last week. This has created a great buying opportunity for the stock as it continues to gain from an overall uptrend in both utilities and energy. The company’s longevity and continued stock price ascent speak to management’s ability to adapt to the ever-changing market landscape.
OGE is a component of the Zacks Utility – Electric Power industry group, which currently ranks in the top 38% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Historical research studies suggest that approximately half of a stock’s future price appreciation is due to its industry grouping. By targeting stocks contained within the top industry groups, we can dramatically improve our odds of success.
Company Description
OGE Energy operates as a domestic energy services provider, offering physical delivery and related services for electricity, natural gas, and crude oil. The company generates, distributes and sells electric energy, providing retail service to nearly 900,000 customers. OGE is the parent company of Oklahoma Gas and Electric Company.
OGE maintains electric generation capacity fueled by low-sulfur coal and natural gas as well as wind and solar sources. The utility company is recognized as a leader in smart grid technology as it prepares for an electric vehicle program that will include a public charging infrastructure and advanced LED street and security lighting.
OGE Energy is Oklahoma’s largest electric utility company and also operates a multitude of transmission systems in western Arkansas. OGE was founded in 1902 and is headquartered in Oklahoma City, OK.
Recent Earnings and Future Estimates
OGE has surpassed earnings estimates several times over the past year. The energy provider most recently reported fourth-quarter EPS back in February of $1.59, earning $319.2 million during the period. This represented a 488.9% surge from the same quarter in the prior year. Adjusted for non-recurring gains, earnings came to 27 cents per share.
The utility company has delivered an average earnings surprise of 24.07% over the past four quarters. OGE is scheduled to report its Q1 earnings results on May 5th. Analysts are expecting quarterly EPS of $1.25, which would translate to 380.77% growth relative to the same quarter in 2021.
OGE has also witnessed recent positive earnings estimate revisions for the current year. Analysts have revised 2022 earnings estimates upward by +29.11% in the past 60 days. The Zacks Consensus EPS Estimate now stands at $2.75, reflecting potential growth of 16.53% relative to last year.
Let’s Get Technical
OGE has continued its winning ways over the past few months while the market has been in correction mode. This is the kind of stock we want to include in our portfolio – one with both strong fundamentals as well as technicals. The stock has trended very well over the last 12 months, and we can see below that the 200-day moving average (red line) served as support multiple times in the past year.
Image Source: StockCharts
Both the 50-day (blue line) and 200-day moving average lines are sloping up and the stock continues to make a series of new 52-week highs. While OGE has pulled back slightly in recent trading sessions, the stock is looking to find support and a push back to new all-time highs may be just around the corner. Cautious investors may feel hesitant about investing in a stock that has come this far, but the fact is this elite company is still outperforming.
Other Factors to Consider
Despite the impressive performance, OGE remains relatively undervalued, irrespective of the metric used:
Image Source: Zacks Investment Research
The utility company also boasts a strong track record in terms of dividend payments, having steadily increased its dividend over the past nine years. OGE currently pays a $1.64 annual dividend, equating to a 3.94% dividend yield.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. And as we know, OGE Energy has witnessed positive revisions as of late. As long as this trend remains intact (and OGE continues to post earnings beats), the stock should continue its bullish run this year.
Bottom Line
With a robust earnings history and an improving future outlook, OGE Energy represents a great opportunity. The Zacks Rank #1 (Strong Buy) stock is a compelling investment with an attractive dividend yield and strong price momentum.
Solid institutional buying and a high-performing industry group should continue to provide a tailwind for the stock price. Recent positive earnings estimate revisions will help to provide a cushion during any potential market decline. If you’re looking for a way to diversify your portfolio, make sure to put OGE on your shortlist.