In the latest trading session, Oneok Inc. (OKE) closed at $73.35, marking a +2.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%.
The natural gas company's stock has dropped by 2.98% in the past month, falling short of the Oils-Energy sector's gain of 1.33% and the S&P 500's gain of 2.09%.
The upcoming earnings release of Oneok Inc. will be of great interest to investors. On that day, Oneok Inc. is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 22.88%. Meanwhile, our latest consensus estimate is calling for revenue of $9.31 billion, up 85.4% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.48 per share and a revenue of $35.71 billion, demonstrating changes of +6% and +64.58%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Oneok Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% lower. Oneok Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Oneok Inc. is presently being traded at a Forward P/E ratio of 13.11. This indicates a premium in contrast to its industry's Forward P/E of 11.81.
Meanwhile, OKE's PEG ratio is currently 1.71. 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. By the end of yesterday's trading, the Oil and Gas – Production Pipeline – MLB industry had an average PEG ratio of 1.34.
The Oil and Gas – Production Pipeline – MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
