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Oneok Inc. (OKE) Outperforms Broader Market: What You Need to Know

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Oneok Inc. (OKE - Free Report) ended the recent trading session at $81.32, demonstrating a +1.41% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.

The natural gas company's shares have seen a decrease of 0.5% over the last month, not keeping up with the Oils-Energy sector's gain of 3.8% and the S&P 500's gain of 5.12%.

The investment community will be closely monitoring the performance of Oneok Inc. in its forthcoming earnings report. On that day, Oneok Inc. is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 1.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.78 billion, up 38.46% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.23 per share and a revenue of $28.92 billion, demonstrating changes of +1.16% and +33.3%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Oneok Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Oneok Inc. possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Oneok Inc. has a Forward P/E ratio of 15.32 right now. This valuation marks a premium compared to its industry average Forward P/E of 12.29.

Also, we should mention that OKE has a PEG ratio of 1.62. 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. As the market closed yesterday, the Oil and Gas - Production Pipeline - MLB industry was having an average PEG ratio of 1.12.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 21% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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