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Oneok Inc. (OKE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Oneok Inc. (OKE - Free Report) closed at $42.23, marking a -1.42% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.

Coming into today, shares of the natural gas company had gained 10.41% in the past month. In that same time, the Utilities sector gained 2.98%, while the S&P 500 gained 4.27%.

Investors will be hoping for strength from OKE as it approaches its next earnings release, which is expected to be February 22, 2021. In that report, analysts expect OKE to post earnings of $0.71 per share. This would mark a year-over-year decline of 7.79%. Meanwhile, our latest consensus estimate is calling for revenue of $2.91 billion, up 9.21% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for OKE. These revisions help to show the ever-changing nature of near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.83% higher. OKE is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, OKE is currently trading at a Forward P/E ratio of 14.72. This represents a discount compared to its industry's average Forward P/E of 15.02.

Investors should also note that OKE has a PEG ratio of 3.19 right now. 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. Utility - Gas Distribution stocks are, on average, holding a PEG ratio of 2.68 based on yesterday's closing prices.

The Utility - Gas Distribution industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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