OKE Should I Buy
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ONEOK Inc (OKE) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the company has stable cash flows and growth projects, the technical indicators and options sentiment do not suggest a compelling entry point. Additionally, analyst ratings and price target changes reflect mixed sentiment, and the stock's growth outlook appears limited in the near term.
The stock's MACD is negative and contracting, indicating bearish momentum. RSI is neutral at 57.477, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 84.505, with resistance at 88.047 and support at 80.962. Overall, the technical indicators suggest a neutral to slightly bullish trend but do not indicate a strong buy signal.
ONEOK increased its dividend by 4% for 2026, supported by stable cash flows and ongoing growth projects. Revenue increased by 29.50% YoY in Q4 2025, indicating strong top-line growth.
EPS dropped by 1.27% YoY, and gross margin declined by 18.47% YoY in Q4 2025, raising concerns about profitability. Analysts have mixed views, with some lowering price targets and expressing doubts about near-term growth without commodity tailwinds. The company's FY26 guidance is flat compared to FY25, which limits growth expectations.
In Q4 2025, revenue increased by 29.50% YoY to $9.065 billion, and net income rose by 5.85% YoY to $977 million. However, EPS dropped by 1.27% YoY to 1.55, and gross margin declined by 18.47% YoY to 25.16. While revenue growth is strong, declining margins and EPS raise concerns about operational efficiency.
Analysts have mixed ratings on OKE. Barclays raised its price target to $82, citing a diversified footprint and operating leverage. Stifel lowered its price target to $91, viewing 2026 as a transition year. Jefferies raised its target to $85 but expressed concerns about growth without commodity tailwinds. JPMorgan downgraded the stock to Neutral, citing missed EBITDA guidance and soft macro fundamentals.
