Stock Price & Analysis

Based on the analysis of ONEOK Inc. (OKE), the stock is currently trading near the lower end of its 52-week range and has shown recent weakness, suggesting it may not be the best time to buy. However, the company's strong fundamentals and growth prospects could make it a hold candidate for long-term investors.

Price Prediction for OKE Stock in 2025

Based on the analysis of technical indicators, fundamental data, and analyst sentiment, here is the price prediction for OKE Stock in 2025:

1. Price Prediction:

   • Target Price: $105 - $110
   • Reason: Strong earnings growth, positive analyst upgrades, and favorable technical indicators suggest upward momentum, though valuations may limit significant upside.

2. Reasoning:

   • Earnings Growth: OKE has shown strong revenue and net income growth, with a 53.81% year-over-year revenue increase.
   • Analyst Upgrades: Recent analyst upgrades, including a price target of $110, indicate confidence in the stock's potential.
   • Technical Indicators: Bullish RSI and MACD trends, along with Fibonacci resistance levels, suggest the stock is likely to test $105-$110 in 2025.

The S1 support level for OKE Stock is $97.95 ,The R1 resistant level for OKE Stock is $102.8.

As of the end of day on 2025-04-01, the price of OKE Stock was $99.51.

The target price for OKE Stock according to analyst rating is 114.82, with the highest price target at 147.00 and the lowest at 101.00. Analysts have a Moderate Buy rating on OKE Stock overall.

The market cap of OKE is $62.1B.

Analysis and Insights

1. Valuation Metrics: ONEOK Inc. (OKE) currently trades at a Forward P/E ratio of 18.57, which is significantly higher than the industry average of 13.18, suggesting potential overvaluation. Its PEG ratio of 4.23 further indicates a premium relative to its growth prospects, compared to the industry average of 1.16.

2. Recent Performance: OKE's stock has underperformed the broader market, declining 11.2% over the past three months, while the S&P 500 dropped 7.33% during the same period. This underperformance, combined with its high valuation, raises concerns about its current price levels.

3. Debt and Cash Flow: The company's long-term debt has increased by 46.4% year-over-year, reaching over $31 billion, while its cash conversion ratio has declined to 72.1% from 84.3% in the prior year. This trend has weakened investor confidence despite strong revenue growth.

4. Analyst Sentiment: While OKE holds a consensus rating of "Moderate Buy" with a mean price target of $111.18, representing a 20% premium to its current price, some analysts have lowered their price targets due to valuation concerns and near-term challenges.

5. Conclusion: Based on its elevated valuation metrics, underperformance relative to the market, and rising debt levels, OKE appears overvalued at current levels. However, its strong revenue growth and "Moderate Buy" consensus rating suggest potential for future upside.

Oneok, Inc. is a midstream service provider of gathering, processing, fractionation, transportation, storage, and marine export services. Its segments include Natural Gas Gathering and Processing; Natural Gas Liquids; Natural Gas Pipelines, and Refined Products and Crude. The Natural Gas Gathering and Processing segment provides midstream services to producers in North Dakota, Montana, Wyoming, Kansas, and Oklahoma. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute natural gas liquids (NGLs) and store Purity NGLs, primarily in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region, which includes the Williston, Powder River and DJ Basins. The Natural Gas Pipelines segment transports and stores natural gas. The Refined Products and Crude segment transports, stores and distributes refined Products and crude oil, as well as conducts certain commodity-related activities including liquids blending and marketing activities.

Price Prediction for OKE Stock by 2030

1. Estimated Price Range: $125 - $150 per share.
2. Reasoning:
   • Strong Financial Performance: ONEOK has shown consistent revenue growth, with a 33.7% year-over-year increase in Q4 2024, driven by strategic acquisitions and higher volumes.
   • Midstream Energy Leadership: As a leading midstream energy company, ONEOK is well-positioned to benefit from growing demand for energy infrastructure, particularly in natural gas and NGLs.
   • Valuation and Analyst Sentiment: The stock currently trades at a forward P/E of 18.57, with a mean analyst price target of $111.18, indicating potential upside. Analysts have recently upgraded their ratings, reflecting confidence in the company's outlook.
   • Long-Term Growth Drivers: ONEOK's focus on fee-based earnings, strategic joint ventures, and expansion projects positions it for sustained growth over the next five years.

OKE has a total of 4775 employees.