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Oneok Inc. (OKE) Stock Sinks As Market Gains: Here's Why

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Oneok Inc. (OKE - Free Report) closed the most recent trading day at $70.87, moving -3.77% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

Shares of the natural gas company witnessed a loss of 1.71% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 0.26%, and the S&P 500's gain of 0.59%.

The investment community will be paying close attention to the earnings performance of Oneok Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 3.18% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.62 billion, indicating a 51.65% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.35 per share and a revenue of $35.18 billion, indicating changes of +3.48% and 0%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Oneok Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.42% rise in the Zacks Consensus EPS estimate. At present, Oneok Inc. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Oneok Inc. is currently trading at a Forward P/E ratio of 12.58. This expresses a premium compared to the average Forward P/E of 11.94 of its industry.

We can additionally observe that OKE currently boasts a PEG ratio of 4.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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