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OGE Energy (OGE) Gains But Lags Market: What You Should Know

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In the latest trading session, OGE Energy (OGE - Free Report) closed at $39.41, marking a +0.84% move from the previous day. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.25%.

Heading into today, shares of the energy services company had gained 11.63% over the past month, outpacing the Utilities sector's gain of 0.22% and the S&P 500's gain of 4.44% in that time.

Wall Street will be looking for positivity from OGE Energy as it approaches its next earnings report date. This is expected to be August 4, 2022. The company is expected to report EPS of $0.43, down 23.21% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for OGE Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. OGE Energy is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, OGE Energy is holding a Forward P/E ratio of 18.18. Its industry sports an average Forward P/E of 18.61, so we one might conclude that OGE Energy is trading at a discount comparatively.

We can also see that OGE currently has a PEG ratio of 5.24. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.21 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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


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