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ONEOK Hits 52-Week High on Impressive Distribution Rates

Zacks Equity Research

Shares of ONEOK Inc. OKE scaled a new 52-week high of $56.00 on Dec 1, before closing at $54.42. Over the past 52 weeks, ONEOK Inc.’s shares have ranged from a low of $18.84 on Dec 18, 2015 to a high of $56.00 on Dec 1, 2016. The average volume of shares traded over the last three months is approximately 1.9 million.

What’s Driving the Stock?

ONEOK Partners L.P. OKS is the primary growth vehicle for ONEOK Inc.  In the third quarter of 2016, the company obtained $197.5 million as distribution from the partnership. ONEOK Partners’ financial strength, diversified operations, excellent market connectivity and systematic investments in organic projects and strategic acquisitions provide the company a distinct competitive advantage.

Moreover, the company continues to control operating costs and has reduced contract labor.  This trend is expected to continue through 2016. Its proactive approach to reduce capital spending and operating costs will boost its financial health as well as its performance.

ONEOK INC Price and Consensus

 

ONEOK INC Price and Consensus | ONEOK INC Quote

Price Movement

The company’s stock has surged about 103.1% this year, outperforming the Zacks Categorized Utility-Gas Distribution industry’s return of 22% in the last 12 months.

This is perhaps because the company is benefitting from an improvement in ethane fundamentals, which is in turn driving the stock price.

Zacks Rank & Key Picks

ONEOK Inc. currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same space include ONE Gas, Inc. OGS and South Jersey Industries, Inc. SJI. Both the stocks carrya Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ONE Gas delivered an average positive earnings surprise of 12.5% in the trailing four quarters.

On the other hand, South Jersey Industriesrecorded an average positive earnings surprise of 33.3% in the last three quarters.

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ONEOK INC (OKE): Free Stock Analysis Report
 
SOUTH JERSEY IN (SJI): Free Stock Analysis Report
 
ONEOK PARTNERS (OKS): Free Stock Analysis Report
 
ONE GAS INC (OGS): Free Stock Analysis Report
 
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