Stock of the Day

January 25, 2023

ONEOK (OKE)

$98.07
-$0.56 (-0.6%)
Market Cap: $57.62B

About ONEOK

ONEOK, Inc. engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; and provides midstream services to producers of NGLs. It also owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, the company transports and stores natural gas through regulated interstate and intrastate natural gas transmission pipelines, and natural gas storage facilities. Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space and rail cars. Additionally, the company transports, stores, and distributes refined products, NGLs, and crude oil, as well as conducts commodity-related activities, including liquids blending and marketing activities. It serves integrated and independent exploration and production companies; other NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; utilities; industrial companies; natural gasoline distributors; propane distributors; municipalities; ethanol producers; petrochemical, refining, and marketing companies; and heating fuel users, refineries, and exporters. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.

ONEOK Bull Case

Here are some ways that investors could benefit from investing in ONEOK, Inc.:

  • Recent upgrades from analysts, including a "strong-buy" rating from US Capital Advisors, indicate growing confidence in the company's performance.
  • ONEOK, Inc. has a significant institutional ownership of 69.13%, suggesting that many large investors believe in the company's potential for growth.
  • The stock price recently reached $98.86, reflecting a 1.3% increase, which may indicate positive market sentiment and potential for further appreciation.
  • Brokerage reports have set an average target price of $103.92, suggesting that there is room for price growth based on current valuations.
  • ONEOK, Inc. has shown resilience with a solid trading volume, indicating strong investor interest and liquidity in the stock.

ONEOK Bear Case

Investors should be bearish about investing in ONEOK, Inc. for these reasons:

  • Wells Fargo recently downgraded the stock from an "overweight" rating to "equal weight," which may signal concerns about future performance.
  • The company's debt-to-equity ratio stands at 1.59, indicating a higher level of debt compared to equity, which could pose risks in a rising interest rate environment.
  • ONEOK's stock has a fifty-two week high of $118.07, suggesting that it may be trading near its peak, which could limit upside potential.
  • Recent selling by institutional investors, such as Essex Financial Services reducing their holdings by 32.7%, may indicate a lack of confidence among some large stakeholders.
  • Market volatility and economic uncertainties could impact the utilities sector, potentially affecting ONEOK's stock performance negatively.

Recent News