Oke a strong buy?

Oneok (OKE) is not currently considered a strong buy. Here's why:

1. Financial Performance and Growth:
   • Oneok's recent financials show a total revenue of $4.89 billion, with a net income of $780 million and a diluted EPS of $1.33. The growth rates for revenue, net income, and diluted EPS are 31.14%, 66.67%, and 22.02% respectively. These are strong growth rates, indicating a robust business performance.
   • The 3-year revenue CAGR is 3.38%, the net income CAGR is 33.14%, and the diluted EPS CAGR is 27.9%. These CAGRs suggest a stable and growing earnings trend over the past three years.

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OKE Total Revenue, Net Income...

2. Valuation Metrics:
   • Oneok's P/E(TTM) ratio is 25.1, which is on the higher end, suggesting that the stock may be overvalued compared to its earnings.
   • The Price to Book Ratio is 3.38, and the P/S Ratio is 2.92, both of which are reasonable and indicate a fair valuation based on the company's assets and sales.

CVX, OKE, XOM, EOG P/E(TTM), P/S...

3. Institutional Activity and Analyst Sentiments:
   • There has been significant institutional selling pressure, with several major investors trimming their stakes in Oneok. This could indicate a lack of confidence in the stock's future performance.
   • While there are some positive analyst ratings and price target increases, such as Citi's reaffirmation of its Buy rating and price target of $102, there are also concerns about the company's valuation and dividend yield, leading some to consider it a poor investment.
4. Market Conditions and Recent Performance:
   • Oneok's stock has experienced some volatility and has not kept up with the broader market's gains. This could be due to various factors, including market conditions and company-specific news.
   • The company's recent debt offering and the termination of a loan facility suggest a strategic shift in financing and capital allocation, which could impact its future performance.

In conclusion, while Oneok has shown strong growth in recent years and has a reasonable valuation based on some metrics, the concerns about valuation, institutional selling, and recent stock performance suggest that it is not a strong buy at this time. Investors should weigh these factors and consider the company's strategic positioning and growth prospects before making an investment decision.