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Should You Hold ONEOK (OKE) Stock in Your Portfolio Now?
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ONEOK Inc. (OKE - Free Report) is gaining from acquisition of ONEOK Partners, higher fee-based earnings as well as systematic investment to expand and strengthen operation in prolific oil and gas basins in the United States.
ONEOK Partners will be accretive to the company’s distributable cash flow from 2017 through 2021. ONEOK Partners’ financial strength, diverse operations, excellent market connectivity, systematic investments in organic projects and strategic acquisitions provide ONEOK a distinct competitive advantage.
ONEOK has a network of nearly 38,000 miles of natural gas liquids and natural gas pipelines. The pipelines are strategically placed in highly productive regions, courtesy of completed projects worth $9 billion between 2006 and 2016. These projects enabled the company gather and process more natural gas each passing year. The company also invested $490 million to expand few pipelines during the third quarter 2017.
In addition, more than 95% earnings of the company’s Natural Gas Pipelines in 2017 are likely to come from fee-based contracts. These contracts provide surety and visibility to future earnings.
All these factors had a positive impact on the price performance of the company. Shares of the company have returned 4.7% in the last six months compared with the Zacks Gas Distribution industry’s rally of 3.2%.
However, increasing competition in the industry, stringent government regulations and fluctuating weather patterns are headwinds.
Chesapeake Utilities reported third-quarter 2017 earnings from continuing operations of 42 cents per share, beating the Zacks Consensus Estimate of 35 cents by 20.0%. Its 2017 estimates improved 0.7% to $2.85 from $2.83 in the last 60 days.
One Gas reported third-quarter 2017 earnings from continuing operations of 36 cents, beating the Zacks Consensus Estimate of 28 cents by 28.57%. Its 2017 estimates increased 0.7% to $3.01 from $2.99 in the last 60 days.
Spire Inc.’s reported loss of 22 cents in third-quarter 2017 is narrower than the Zacks Consensus Estimate loss of 26 cents. Its 2017 estimates increased by 0.3% to $3.71 from $3.70 in the last 60 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Should You Hold ONEOK (OKE) Stock in Your Portfolio Now?
ONEOK Inc. (OKE - Free Report) is gaining from acquisition of ONEOK Partners, higher fee-based earnings as well as systematic investment to expand and strengthen operation in prolific oil and gas basins in the United States.
ONEOK Partners will be accretive to the company’s distributable cash flow from 2017 through 2021. ONEOK Partners’ financial strength, diverse operations, excellent market connectivity, systematic investments in organic projects and strategic acquisitions provide ONEOK a distinct competitive advantage.
ONEOK has a network of nearly 38,000 miles of natural gas liquids and natural gas pipelines. The pipelines are strategically placed in highly productive regions, courtesy of completed projects worth $9 billion between 2006 and 2016. These projects enabled the company gather and process more natural gas each passing year. The company also invested $490 million to expand few pipelines during the third quarter 2017.
In addition, more than 95% earnings of the company’s Natural Gas Pipelines in 2017 are likely to come from fee-based contracts. These contracts provide surety and visibility to future earnings.
All these factors had a positive impact on the price performance of the company. Shares of the company have returned 4.7% in the last six months compared with the Zacks Gas Distribution industry’s rally of 3.2%.
However, increasing competition in the industry, stringent government regulations and fluctuating weather patterns are headwinds.
Zacks Rank & Key Picks
ONEOK currently has a Zacks Rank#3 (Hold). Some better-ranked stocks from the same industry are Chesapeake Utilities Corporation (CPK - Free Report) , One Gas Inc. (OGS - Free Report) and Spire Inc. (SR - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chesapeake Utilities reported third-quarter 2017 earnings from continuing operations of 42 cents per share, beating the Zacks Consensus Estimate of 35 cents by 20.0%. Its 2017 estimates improved 0.7% to $2.85 from $2.83 in the last 60 days.
One Gas reported third-quarter 2017 earnings from continuing operations of 36 cents, beating the Zacks Consensus Estimate of 28 cents by 28.57%. Its 2017 estimates increased 0.7% to $3.01 from $2.99 in the last 60 days.
Spire Inc.’s reported loss of 22 cents in third-quarter 2017 is narrower than the Zacks Consensus Estimate loss of 26 cents. Its 2017 estimates increased by 0.3% to $3.71 from $3.70 in the last 60 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>