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

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 lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.6%. By the end of trading, ONEOK fell $1.86 (-4%) to $44.34 on heavy volume. Throughout the day, 4.5 million shares of ONEOK exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $44.25-$46.18 after having opened the day at $46.02 as compared to the previous trading day's close of $46.20. Other companies within the Utilities sector that declined today were: Empresa Distribuidora y Comercializadora No ( EDN), down 4.5% and FirstEnergy ( FE), down 1.7%.
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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 $9.7 billion and is part of the utilities industry. The company has a P/E ratio of 28.7, above the S&P 500 P/E ratio of 17.7. Shares are up 10.9% year to date as of the close of trading on Monday. Currently there are eight analysts that rate ONEOK a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates ONEOK as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, growth in earnings per share 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 positive front, Centrais Eletricas Brasileiras ( EBR), up 6.3%, China Hydroelectric Corporation ( CHC), up 6%, Consolidated Water Company ( CWCO), up 4.1%, and Centrais Eletricas Brasileiras ( EBR.B), up 3.4%, were all gainers within the utilities sector with American Electric Power ( AEP) being today's featured utilities sector leader.

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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