U.S. markets closed
  • S&P 500

    3,841.94
    +73.47 (+1.95%)
     
  • Dow 30

    31,496.30
    +572.16 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.68 (+1.55%)
     
  • Russell 2000

    2,192.21
    +45.29 (+2.11%)
     
  • Crude Oil

    66.28
    +2.45 (+3.84%)
     
  • Gold

    1,698.20
    -2.50 (-0.15%)
     
  • Silver

    25.30
    -0.17 (-0.65%)
     
  • EUR/USD

    1.1925
    -0.0054 (-0.45%)
     
  • 10-Yr Bond

    1.5540
    +0.0040 (+0.26%)
     
  • GBP/USD

    1.3827
    -0.0067 (-0.48%)
     
  • USD/JPY

    108.2450
    +0.2690 (+0.25%)
     
  • BTC-USD

    48,689.54
    +1,989.87 (+4.26%)
     
  • CMC Crypto 200

    982.93
    +39.75 (+4.21%)
     
  • FTSE 100

    6,630.52
    -20.36 (-0.31%)
     
  • Nikkei 225

    28,864.32
    -65.78 (-0.23%)
     

Oneok Inc. (OKE) Outpaces Stock Market Gains: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Oneok Inc. (OKE) closed the most recent trading day at $43.43, moving +1.38% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the natural gas company had gained 5.26% in the past month. In that same time, the Utilities sector gained 2.63%, while the S&P 500 gained 4.41%.

Investors will be hoping for strength from OKE as it approaches its next earnings release, which is expected to be February 22, 2021. The company is expected to report EPS of $0.72, down 6.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.91 billion, up 9.21% from the year-ago period.

Investors might also notice recent changes to analyst estimates for OKE. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Within the past 30 days, our consensus EPS projection has moved 4.3% higher. OKE currently has a Zacks Rank of #2 (Buy).

In terms of valuation, OKE is currently trading at a Forward P/E ratio of 14.27. For comparison, its industry has an average Forward P/E of 15.61, which means OKE is trading at a discount to the group.

Also, we should mention that OKE has a PEG ratio of 3.09. 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. The Utility - Gas Distribution industry currently had an average PEG ratio of 2.57 as of yesterday's close.

The Utility - Gas Distribution industry is part of the Utilities sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ONEOK, Inc. (OKE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research