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

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Oneok Inc. (OKE - Free Report) closed at $62.73 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the natural gas company had gained 4.08% over the past month, outpacing the Utilities sector's loss of 2.58% and the S&P 500's loss of 4.03% in that time.

Wall Street will be looking for positivity from Oneok Inc. as it approaches its next earnings report date. This is expected to be February 28, 2022. On that day, Oneok Inc. is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 26.09%. Meanwhile, our latest consensus estimate is calling for revenue of $6.49 billion, up 152.49% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Oneok Inc.Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% lower. Oneok Inc. is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Oneok Inc. is currently trading at a Forward P/E ratio of 17.14. For comparison, its industry has an average Forward P/E of 16.25, which means Oneok Inc. is trading at a premium to the group.

Investors should also note that OKE has a PEG ratio of 2.18 right now. 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 was holding an average PEG ratio of 2.7 at yesterday's closing price.

The Utility - Gas Distribution industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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