OKE

Stock Performance: ONEOK Inc. shares dropped 12.77% to $80.86 amid a broader market decline, with the S&P 500 and Dow Jones also experiencing significant losses.

Market Trends: This decline marks the second consecutive day of losses for ONEOK's stock, reflecting ongoing volatility in the trading session.

Market Volatility and Trading Strategy: In response to recent market volatility due to new import taxes, traders are advised to focus on capital preservation by using strategies like long call butterflies, which allow for potential profits while minimizing risk during uncertain times.

Specific Trade Recommendation: The article recommends a long call butterfly trade on ONEOK Inc. (OKE), detailing the specific options to buy and sell, along with profit potential and exit strategies, emphasizing the importance of monitoring price movements and adjusting positions accordingly.

Earnings Release Announcement: ONEOK, Inc. will release its first quarter 2025 earnings on April 29, 2025, and hold a conference call on April 30, 2025, at 11 a.m. Eastern Time for further discussion.

Company Overview: ONEOK is a leading midstream operator in North America, providing essential energy services through a vast pipeline network, contributing to energy security and reliable solutions globally.

Dividend Predictability: Dividend amounts are often unpredictable and fluctuate based on a company's profitability, with ONEOK Inc's history providing insight into the likelihood of maintaining a 5% annual yield.

Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.

ONEOK INC Analysis: ONEOK INC (OKE) receives a 72% rating from Validea's P/E/Growth Investor model, indicating strong fundamentals and valuation in the Oil & Gas Operations industry, with scores above 80% suggesting investor interest.

Peter Lynch's Influence: The report references Peter Lynch, a renowned mutual fund manager known for his successful investment strategies, emphasizing his accessible approach to stock investing as outlined in his book "One Up on Wall Street."

Stock Performance: Oneok Inc. (OKE) closed at $98.48, down 0.2%, underperforming compared to the S&P 500 and other major indices, but has seen a 2.11% increase over the past month.

Earnings Outlook: Analysts expect Oneok to report an EPS of $1.28 and revenue of $7.59 billion for the upcoming quarter, with positive revisions indicating optimism about future performance; currently, it holds a Zacks Rank of #3 (Hold).

Energy Sector Performance: Energy stocks are the worst performing sector with a 1.3% loss, led by ONEOK Inc and EQT Corp, which have year-to-date performances of -0.49% and +12.42%, respectively. The Energy Select Sector SPDR ETF is down 1.2% on the day but up 8.96% year-to-date.

Technology & Communications Sector Performance: The Technology & Communications sector follows closely with a 0.9% loss, highlighted by Palo Alto Networks and Super Micro Computer, showing year-to-date changes of -3.41% and +15.55%. The Technology Select Sector SPDR ETF is down 0.9% for the day and 8.89% year-to-date.

Analyst Ratings Overview: Recent evaluations of ONEOK by seven analysts show a mix of bullish and bearish sentiments, with an average 12-month price target of $108.86, reflecting a slight increase from previous targets.

Financial Performance Insights: ONEOK demonstrates strong revenue growth at 33.72% but faces challenges with a net margin of 13.19%, while maintaining a solid return on equity (ROE) of 5.44% and a favorable debt-to-equity ratio of 1.88.

ONEOK INC Analysis: ONEOK INC (OKE) receives a 72% rating from Validea's P/E/Growth Investor model, indicating strong fundamentals and valuation in the Oil & Gas Operations industry, with scores above 80% suggesting investor interest.

Peter Lynch's Influence: The report references Peter Lynch, a renowned mutual fund manager known for his successful investment strategies, emphasizing his accessible approach to stock investing as outlined in his book "One Up on Wall Street."

52 Week Range and Current Price: DVY's share price has a 52-week low of $115.43 and a high of $144.09, with the latest trade at $133.99, indicating its position within this range.

ETFs Trading Dynamics: Exchange traded funds (ETFs) function like stocks but involve trading "units" that can be created or destroyed based on investor demand, impacting the underlying holdings significantly.

Oneok Inc. Trading Performance: Oneok Inc. (OKE) closed at $99.34, down 1.3%, while the S&P 500 gained 0.08%. Despite this, OKE saw a monthly gain of 2.05%, outperforming the Oils-Energy sector and S&P 500.

Earnings Expectations and Analyst Outlook: The company is expected to report an EPS of $1.31, a 20.18% increase year-over-year, with projected revenue of $7.35 billion. Currently, Oneok holds a Zacks Rank of #4 (Sell), indicating a downward trend in earnings estimates.

Industry Reaction to Trump's Election: The oil-and-gas industry celebrated Donald Trump's election victory, but is now divided on the implications for their future, with concerns over staffing and regulatory changes.

Challenges Facing Oil Companies: Companies are worried about increased drilling costs due to steel tariffs and the administration's push to lower crude prices, which could negatively impact their profitability.

Company Overview: ONEOK, Inc., a midstream energy company based in Tulsa, Oklahoma, has a market cap of $57.1 billion and is crucial for connecting oil & gas producers with markets across North America, despite experiencing a 21.5% drop from its all-time high in late 2024.

Financial Performance: Although ONEOK reported strong Q4 results with a 33.7% year-over-year revenue increase, concerns over rising long-term debt and declining cash conversion ratios have affected investor confidence, leading to a stock price dip despite a consensus rating of "Moderate Buy" among analysts.

Put Contract Analysis: The $90.00 put contract for OKE stock has a bid of $8.50, allowing investors to buy shares at an effective cost of $81.50, which is attractive compared to the current price of $92.24. There is a 59% chance that this contract may expire worthless, potentially yielding a 9.44% return on cash commitment.

Call Contract Overview: The $95.00 call contract offers a bid of $9.90, providing a potential total return of 13.73% if the stock is called away by June 2026. With a 47% chance of expiring worthless, investors could retain their shares and gain a 10.73% additional return from the premium collected.

Cramer's Insights on Stocks: Jim Cramer praised Fiserv as a top fintech and noted Farmland Partners' strong earnings, while expressing concerns over Sempra's disappointing quarter and advising caution on Recursion Pharmaceuticals and Rigetti Computing, labeling the latter a "meme" stock.

Market Reactions: Following recent earnings reports, Fiserv, Sempra, and ONEOK saw slight declines in their share prices, whereas Rigetti Computing and Recursion Pharmaceuticals experienced notable gains despite missing revenue expectations.

Market Insights: Fiserv is praised as a leading fintech, while Sempra faces criticism for a poor quarter. Rigetti Computing is labeled a meme stock, and Recursion Pharmaceuticals is delaying decisions.

Investment Recommendations: ONEOK is highlighted as a top pipeline company to own, Super Micro Computer requires further remedies before approval, and Farmland Partners is considered a speculative investment.

Real-time Market Intelligence: Benzinga Pro offers the fastest and most accurate stock market alerts, helping traders stay informed and make winning trades daily.

Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, gaining access to exclusive stories and insights from Benzinga reporters.

Analyst Rating Update: Barclays analyst Theresa Chen has reduced the price target for Oneok (OKE) from $105 to $101 while maintaining an Equal Weight rating after discussions with management.

Market Insights: The article highlights other recent stock updates, including price target changes and ratings from various analysts on companies like Scotiabank and Citi.

Analyst Ratings on Oneok: Barclays analyst Theresa Chen maintains a Hold rating on Oneok with a price target of $101, while Wells Fargo also issued a Hold rating and Scotiabank maintained a Buy rating.

Company Performance: Oneok reported a quarterly revenue of $7 billion and a net profit of $923 million for the quarter ending December 31, showing significant growth compared to last year's revenue of $5.18 billion and net profit of $688 million.

Real-time Market Intelligence: Benzinga Pro offers the fastest and most accurate stock market alerts, helping traders stay informed and make winning trades daily.

Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, gaining access to exclusive stories and insights from Benzinga reporters.