ONEOK (OKE) Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume 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 $124.7 million.
- OKE has traded 283,600 shares today.
- OKE is trading at 2.39 times the normal volume for the stock at this time of day.
- OKE is trading at a new low 3.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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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 5.9%. OKE has a PE ratio of 32. Currently there are 5 analysts that rate ONEOK a buy, 2 analysts rate it a sell, and 4 rate it a hold.
The average volume for ONEOK has been 3.2 million shares per day over the past 30 days. ONEOK has a market cap of $8.8 billion and is part of the utilities sector and utilities industry. The stock has a beta of 1.32 and a short float of 8.2% with 5.55 days to cover. Shares are up 70.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates ONEOK as a
. 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 generally higher debt management risk, a generally disappointing performance in the stock itself 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 37.2% when compared to the same quarter one year prior, rising from $60.80 million to $83.45 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.
- 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 ($1.78 versus $1.19).
- OKE has underperformed the S&P 500 Index, declining 7.09% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 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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