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

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Oneok Inc. (OKE - Free Report) closed the most recent trading day at $45.99, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 0.58%.

Heading into today, shares of the natural gas company had gained 2.13% over the past month, outpacing the Utilities sector's loss of 1.51% and lagging the S&P 500's gain of 4.45% in that time.

OKE will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2021. On that day, OKE is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 3.9%. Our most recent consensus estimate is calling for quarterly revenue of $2.91 billion, up 9.21% from the year-ago period.

It is also important to note the recent changes to analyst estimates for OKE. 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.

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 7.51% higher within the past month. OKE is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note OKE's current valuation metrics, including its Forward P/E ratio of 14.41. For comparison, its industry has an average Forward P/E of 15.4, which means OKE is trading at a discount to the group.

Also, we should mention that OKE has a PEG ratio of 2.4. 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 Utility - Gas Distribution was holding an average PEG ratio of 2.42 at yesterday's closing price.

The Utility - Gas Distribution industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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