Strong And Under The Radar Today: ONEOK (OKE)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified ONEOK as such a stock due to the following factors:
- OKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $141.1 million.
- OKE has traded 2616.9600000000000363797880709171295166015625 options contracts today.
- OKE is making at least a new 3-day high.
- OKE has a PE ratio of 36.
- OKE is mentioned 1.58 times per day on StockTwits.
- OKE has not yet been mentioned on StockTwits today.
- OKE is currently in the upper 20% of its 1-year range.
- OKE is in the upper 35% of its 20-day range.
- OKE is in the upper 45% of its 5-day range.
- OKE is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on OKE:
ONEOK, Inc., through its general partner interests in ONEOK Partners, L.P., engages in the gathering, processing, storage, and transportation of natural gas in the United States. The stock currently has a dividend yield of 5.2%. OKE has a PE ratio of 36. Currently there are 3 analysts that rate ONEOK a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for ONEOK has been 2.8 million shares per day over the past 30 days. ONEOK has a market cap of $10.0 billion and is part of the utilities sector and utilities industry. The stock has a beta of 1.35 and a short float of 7.6% with 5.43 days to cover. Shares are up 92.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates ONEOK as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 37.2% when compared to the same quarter one year prior, rising from $60.80 million to $83.45 million.
- ONEOK INC has improved earnings per share by 37.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ONEOK INC reported lower earnings of $1.19 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($1.76 versus $1.19).
- The gross profit margin for ONEOK INC is rather low; currently it is at 22.64%. Regardless of OKE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OKE's net profit margin of 4.70% compares favorably to the industry average.
- The debt-to-equity ratio is very high at 32.16 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.37, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full ONEOK Ratings Report.
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