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

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In the latest trading session, Oneok Inc. (OKE - Free Report) closed at $69.90, marking a +0.65% move from the previous day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 11.35%.

Coming into today, shares of the natural gas company had lost 1.95% in the past month. In that same time, the Oils-Energy sector gained 3.79%, while the S&P 500 gained 4.49%.

Investors will be hoping for strength from Oneok Inc. as it approaches its next earnings release, which is expected to be February 27, 2023. The company is expected to report EPS of $1.02, up 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.61 billion, up 3.46% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Oneok Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 5.75% higher. Oneok Inc. currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Oneok Inc. is currently trading at a Forward P/E ratio of 14.72. This represents a premium compared to its industry's average Forward P/E of 11.14.

Investors should also note that OKE has a PEG ratio of 1.69 right now. 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. OKE's industry had an average PEG ratio of 4.66 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.


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