ONEOK Inc. (OKE): Today's Featured Utilities Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

ONEOK ( OKE) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole was unchanged today. By the end of trading, ONEOK rose 44 cents (1%) to $43.96 on light volume. Throughout the day, 690,074 shares of ONEOK exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $43.36-$44 after having opened the day at $43.63 as compared to the previous trading day's close of $43.52. Other companies within the Utilities sector that increased today were: U.S. Geothermal ( HTM), up 6.1%, Transportadora de Gas del Sur ( TGS), up 5.7%, Western Gas Equity Partners ( WGP), up 3%, and Pure Cycle Corporation ( PCYO), up 2.5%.
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ONEOK, Inc., a diversified energy company, engages in the gathering, processing, storage, and transportation of natural gas and natural gas liquids in the United States. The company operates through three segments: ONEOK Partners, Natural Gas Distribution, and Energy Services. ONEOK has a market cap of $8.95 billion and is part of the utilities industry. The company has a P/E ratio of 26.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate ONEOK a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ONEOK as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Consolidated Water Company ( CWCO), down 3.3%, Ocean Power Technologies ( OPTT), down 2.5%, NRG Energy ( NRG), down 2.3%, and SJW Corporation ( SJW), down 1.9%, were all laggards within the utilities sector with Entergy ( ETR) being today's utilities sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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