ONEOK, Inc. (OKE) is a prominent energy company with a market cap of $63.7 billion. The Tulsa, Oklahoma-based company focuses on the gathering, processing, and transportation of natural gas and natural gas liquids across multiple segments.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and ONEOK fits this criterion perfectly, exceeding the mark. ONEOK distinguishes itself in the market with its strategically integrated natural gas and natural gas liquids infrastructure. Its expansive network of pipelines, storage facilities, and processing plants allows for efficient management and optimization of energy flows across diverse regions.
Shares of OKE recently touched their 52-week high of $118.07 on Nov. 22 and are currently down 11% from the peak. OKE shares have climbed 14.2% over the past three months, outpacing the S&P 500 Index’s ($SPX) 10.6% returns over the same time frame.
Longer term, OKE stock has risen 49.7% on a YTD basis, outperforming SPX's 26.9% gain. Moreover, shares of ONEOK have soared 54% over the past 52 weeks, compared to SPX’s 31.5% rise over the same time frame.
To confirm the bullish price trend, OKE has been trading above its 50-day and 200-day moving average since last year, despite some fluctuations.
ONEOK has notably surpassed the broader market’s performance this year, fueled by strong oil and gas market fundamentals, a steadfast portfolio of fee-based contracts, and a consistent track record of dividend payouts, reflecting its financial robustness. Through strategic infrastructure investments and astute management, the company has reinforced its reputation as a growth and income powerhouse, drawing investors with a blend of stability and opportunity.
Following ONEOK's Q3 earnings release on Oct. 29, its shares gained 1.4% over the next two trading sessions. The company reported a 19.9% year-over-year revenue increase, reaching $5 billion, while EPS rose 19.2% to $1.18.
By comparison, ONEOK has outshone its rival, EnLink Midstream, LLC (ENLC), which has lagged behind. EnLink’s shares have risen 15.4% over the past 52 weeks and 21.7% on a YTD basis.
While OKE has demonstrated strong price performance, analysts maintain a cautiously optimistic outlook. The stock holds a "Moderate Buy" consensus rating from 17 analysts. Further, the mean price target of $110.33 indicates a potential upswing of 4.7% from the prevailing price levels.
