In the latest close session, Oneok Inc. (OKE) was down 2.76% at $71.55. This change lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.72%.
Shares of the natural gas company have depreciated by 0.59% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.95%, and the S&P 500's gain of 2.99%.
Investors will be eagerly watching for the performance of Oneok Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.48, marking a 25.42% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.31 billion, indicating a 85.4% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $35.71 billion. These totals would mark changes of +5.22% and +64.58%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Oneok Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. Oneok Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Oneok Inc. is currently trading at a Forward P/E ratio of 13.52. This signifies a premium in comparison to the average Forward P/E of 12.19 for its industry.
It is also worth noting that OKE currently has a PEG ratio of 1.81. 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. As the market closed yesterday, the Oil and Gas – Production Pipeline – MLB industry was having an average PEG ratio of 1.42.
The Oil and Gas – Production Pipeline – MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
