OKE’s price performance
ONEOK (OKE) stock has risen ~24% in 2019, outperforming many of its midstream peers. The Energy Select Sector SPDR ETF has risen ~10% over the same timeframe. Most of ONEOK’s midstream peers, including Enterprise Products Partners (EPD), Williams Companies (WMB), and Kinder Morgan (KMI), are down compared to their levels five years ago. EPD is down 20%, while OKE and KMI are down roughly 40% from their prices five years ago. In comparison, ONEOK is trading roughly 8% above its price from five years ago.
ONEOK stock’s outperformance in recent years has contributed to its premium valuation relative to its peers. This premium has likely contributed to analysts’ neutral view on the stock.
Recommendations for ONEOK
Half of the 22 Reuters-surveyed analysts covering ONEOK have rated it as a “hold.” Six analysts have rated it as a “strong buy,” and five have rated it as a “buy.” The mean price target for ONEOK is $71.7, implying a potential upside of ~7% from its current price. The graph above shows changes in analysts’ recommendations and mean price target for ONEOK over the last 12 months.
ONEOK fell below its 50-day moving average on April 30. The stock is currently trading ~2% below its 50-day moving average. It’s trading above its 200-day moving average, which may act as a support for it in the short term.