Trade-Ideas: ONEOK (OKE) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified ONEOK (OKE) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

ONEOK

(

OKE

) as a post-market leader 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 $69.6 million.
  • OKE is up 4.9% today from today's close.

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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 7.2%. OKE has a PE ratio of 24. Currently there are 3 analysts that rate ONEOK a buy, 3 analysts rate it a sell, and 7 rate it a hold.

The average volume for ONEOK has been 2.7 million shares per day over the past 30 days. ONEOK has a market cap of $7.1 billion and is part of the utilities sector and utilities industry. The stock has a beta of 1.29 and a short float of 3.5% with 3.71 days to cover. Shares are down 30.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ONEOK as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • 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 24.2% when compared to the same quarter one year prior, going from $61.59 million to $76.51 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ONEOK INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 30.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • OKE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 43.95%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, OKE is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio is very high at 17.05 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 0.35, which clearly demonstrates the inability to cover short-term cash needs.

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