OKE Should I Buy
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ONEOK Inc. (OKE) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial growth, a solid dividend yield of 5.3%, and consistent dividend increases. Despite mixed analyst ratings, the company's fee-based revenue model, long-term contracts, and recent acquisitions provide stability and growth potential. Technical indicators are bullish, and options data reflects strong call interest, indicating positive sentiment. The stock aligns well with the user's investment goals and preferences.
The technical indicators for OKE are bullish. The MACD histogram is positive at 0.583, indicating upward momentum. The RSI is at 77.131, in the neutral zone, suggesting no immediate overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level (R1: 85.091). Key support levels are at 76.71, providing a safety net for downside risk.
Adjusted EBITDA increased by 37% YoY to $2.1 billion in Q
Operating income rose by 38.1% YoY to $1.6 billion, driven by a fee-based revenue model.
Dividend yield is 5.3%, with a planned annual increase of 3%-4%.
Revenue increased by 71.89% YoY in Q3
The company generates over 90% of its revenue from long-term contracts, ensuring stability.
Analysts like Scotiabank and UBS maintain positive ratings with price targets above the current price.
JPMorgan downgraded the stock to Neutral, citing missed EBITDA guidance and soft macro fundamentals.
Jefferies initiated a Hold rating, highlighting weaker crude pricing as a limiting factor.
Gross margin dropped by 22.49% YoY in Q3
Stock trend analysis shows a potential -4.13% decline in the next month.
ONEOK reported strong financial performance in Q3 2025. Revenue increased by 71.89% YoY to $8.63 billion, net income rose by 35.69% YoY to $939 million, and EPS grew by 26.27% YoY to $1.49. However, gross margin declined by 22.49% YoY to 26.57%. The company also raised its quarterly dividend by 4%, reflecting its commitment to returning value to shareholders.
Analysts have mixed ratings on OKE. Morgan Stanley maintains an Overweight rating with a price target of $104. UBS has a Buy rating with a $103 price target. Scotiabank raised its price target to $91 and keeps an Outperform rating. However, JPMorgan downgraded the stock to Neutral with a price target of $83, and Jefferies initiated coverage with a Hold rating and an $80 price target. The average sentiment is cautiously optimistic, with some concerns about macro fundamentals and crude pricing.
