Oneok Inc. (OKE) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Oneok Inc. (OKE) closed at $97.23, marking a +0.82% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.

Heading into today, shares of the natural gas company had gained 2.85% over the past month, outpacing the Oils-Energy sector's loss of 7.82% and lagging the S&P 500's gain of 3.76% in that time.

The investment community will be closely monitoring the performance of Oneok Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. In that report, analysts expect Oneok Inc. to post earnings of $1.26 per share. This would mark year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.85 billion, up 39.75% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $21.94 billion, which would represent changes of -7.12% and +24.13%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Oneok Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Oneok Inc. is currently a Zacks Rank #2 (Buy).

In terms of valuation, Oneok Inc. is presently being traded at a Forward P/E ratio of 18.95. This valuation marks a premium compared to its industry's average Forward P/E of 12.25.

It is also worth noting that OKE currently has a PEG ratio of 4.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Production Pipeline - MLB industry stood at 1.33 at the close of the market yesterday.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 107, positioning it in the top 43% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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