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Here's Why You Should Add ONEOK (OKE) to Your Portfolio Now

Zacks Equity Research

Earnings estimates for ONEOK, Inc. OKEhave been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 2.4% during the said period.

ONEOKalong with its subsidiaries engages in the gathering, processing, storage and transportation of natural gas in the United States.

Let’s focus on the factors that make the stockan appropriate pick at the moment.

Price Movement

In the past 12 months, ONEOK’s shares have rallied 22.4% compared with the industry’s rise of 11.1%.

Earnings Estimate Revision &Surprise History

ONEOK’s earnings estimate for 2019 and 2020 indicate rise of 6.12% and 20.19% on a year-over-year basis to $2.95 and $3.54 per share, respectively.The company’s average four-quarter positive earnings surprise is 1.24%.

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Zacks Rank & VGM Score

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Return on Equity (ROE)

ONEOK has an ROE of 17.10% compared with the industry average of 9.84%, which indicates its efficiency in utilizing shareholders’ funds.

Long-Term Growth and Dividend Yield

The company’s long-term (three to five years) earnings growth is pegged at 11.49%.

Currently, the company has a dividend yield of 5.15% compared with the Zacks S&P 500 Composite’s 1.96% and industry’s 2.57%.

Other Key Picks

A few other top-ranked stocks from the same sector are Spire Inc. SR, The Southern Company SO and IDACORP IDA, each holding a Zacks Rank of 2.

Spire pulled off an average positive earnings surprise of 10.55% in the last four quarters. The company’s long-term earnings growth is pegged at 3.90%

The Southern Company delivered an average positive earnings surprise of 7.85% in the last four quarters. The company’s long-term earnings growth is pegged at 4.50%

IDACORP pulled off an average positive earnings surprise of 9.60% in the last four quarters. The company’s long-term (three to five years) earnings growth is pegged at 2.60%

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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IDACORP, Inc. (IDA) : Free Stock Analysis Report
 
Southern Company (The) (SO) : Free Stock Analysis Report
 
ONEOK, Inc. (OKE) : Free Stock Analysis Report
 
Spire Inc. (SR) : Free Stock Analysis Report
 
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Zacks Investment Research