Oneok Inc. (OKE) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Oneok Inc. (OKE) closed at $90.39, marking a -2.76% move from the previous day. This change lagged the S&P 500's 2.91% gain on the day. At the same time, the Dow added 2.49%, and the tech-heavy Nasdaq gained 3.83%.

Shares of the natural gas company have appreciated by 7.94% over the course of the past month, underperforming the Oils-Energy sector's gain of 9.79%, and outperforming the S&P 500's loss of 7.64%.

The investment community will be paying close attention to the earnings performance of Oneok Inc. in its upcoming release. The company's upcoming EPS is projected at $1.29, signifying a 24.04% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.16 billion, indicating a 13.93% growth compared to the corresponding quarter of the prior year.

OKE's full-year Zacks Consensus Estimates are calling for earnings of $5.51 per share and revenue of $38.15 billion. These results would represent year-over-year changes of +1.66% and +13.46%, respectively.

Any recent changes to analyst estimates for Oneok Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.64% downward. Oneok Inc. presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Oneok Inc. currently has a Forward P/E ratio of 16.87. For comparison, its industry has an average Forward P/E of 13.62, which means Oneok Inc. is trading at a premium to the group.

Investors should also note that OKE has a PEG ratio of 7.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Production Pipeline - MLB industry stood at 1.56 at the close of the market yesterday.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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ONEOK, Inc. (OKE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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