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Oneok Inc. (OKE) Gains But Lags Market: What You Should Know

Oneok Inc. (OKE) closed the most recent trading day at $27.31, moving +1.41% from the previous trading session. This move lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.

Heading into today, shares of the natural gas company had gained 22.13% over the past month, outpacing the Utilities sector's gain of 17.67% and the S&P 500's gain of 19.13% in that time.

Investors will be hoping for strength from OKE as it approaches its next earnings release, which is expected to be April 28, 2020. On that day, OKE is projected to report earnings of $0.81 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $2.52 billion, down 9.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $10.18 billion, which would represent changes of +11.73% and +0.18%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for OKE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.6% lower within the past month. OKE is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, OKE currently has a Forward P/E ratio of 7.85. This valuation marks a discount compared to its industry's average Forward P/E of 17.18.

Meanwhile, OKE's PEG ratio is currently 1.27. 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 industry currently had an average PEG ratio of 2.68 as of yesterday's close.

The Utility - Gas Distribution industry is part of the Utilities sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow OKE in the coming trading sessions, be sure to utilize Zacks.com.

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