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Is ONEOK (OKE) Stock Outpacing Its Utilities Peers This Year?

Zacks Equity Research
Teva Pharmaceutical Industries Ltd. (TEVA) closed at $8.11 in the latest trading session, marking a -1.1% move from the prior day.

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. ONEOK (OKE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.

ONEOK is one of 123 individual stocks in the Utilities sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. OKE is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for OKE's full-year earnings has moved 4.25% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, OKE has moved about 21.72% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 13.58% on average. This means that ONEOK is outperforming the sector as a whole this year.

To break things down more, OKE belongs to the Utility - Gas Distribution industry, a group that includes 18 individual companies and currently sits at #98 in the Zacks Industry Rank. On average, this group has gained an average of 18.78% so far this year, meaning that OKE is performing better in terms of year-to-date returns.

OKE will likely be looking to continue its solid performance, so investors interested in Utilities stocks should continue to pay close attention to the company.


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