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.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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ONEOK, Inc. (OKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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