Analysts on Wall Street Give Opinion on ONEOK's Shares
In the past 52 weeks, ONEOK, Inc. (OKE) has underperformed the broader S&P 500 Index and the First Trust Nasdaq Oil & Gas ETF, primarily due to a significant stock price decline despite stable or improving operational results.
Over the same time frame, the S&P 500 Index has gained 20.6%, while the broader energy sector has also outperformed OKE. The key contributing factors include a stock price decline and volatility, revenue and earnings dynamics, market valuation and financial ratios, sector and macro factors, technical and analyst sentiment, and recent regulatory decisions.
OKE’s share price dropped approximately 15.4% over the past year, trading near its 52-week low (~$72.18) compared to a high of $118.07. Despite solid second quarter 2025 earnings with EPS slightly beating estimates and affirming full-year guidance, its revenue was below some expectations.
ONEOK trades at a price-to-earnings (P/E) ratio of about 14.3 with a moderate P/E-to-growth (PEG) ratio of 1.73, a beta near 1 indicating market-correlated volatility, and a high debt-to-equity ratio (~1.35 or 148.2%), which may raise concerns about financial leverage in a rising interest rate environment.
Typical factors for energy midstream companies like ONEOK include vulnerability to natural gas price fluctuations, pipeline regulatory risks, and broader market rotation away from energy infrastructure stocks. The divestiture of some interstate natural gas pipeline assets contributed to a decrease in adjusted EBITDA by about $31-63 million, partially offsetting gains from acquisitions like EnLink.
ONEOK’s stock shows negative momentum with 1-month and 3-month declines of over 8%, and analysts give it a "Moderate Buy" rating but note better alternatives exist, which may have pressured its relative performance. Price targets vary widely from $83 to $133, signaling uncertainty about near-term upside.
Despite the underperformance, the positive impact of the EnLink and Medallion acquisitions has improved ONEOK's adjusted EBITDA by 22%, reaching $2 billion. The mean price target of $100.59 represents a 35.8% premium from OKE's current price levels, while the Street-high price target of $147 suggests an ambitious upside potential of 98.5%.
Among the 17 analysts covering the stock, the consensus rating for OKE is a "Moderate Buy". As of the publication date, Neharika Jain does not have positions in any of the securities mentioned in the article. For more information, please view the website's Disclosure Policy here. The article does not contain any advertisements.
[1] ONEOK Q2 2025 Earnings Release, August 4, 2025. [2] JPMorgan Chase & Co. Research Report, August 8, 2025. [3] Yahoo Finance, ONEOK, Inc. (OKE) Stock Price and Chart, accessed August 15, 2025. [4] Seeking Alpha, ONEOK, Inc. (OKE) Price Targets and Rating Changes, accessed August 15, 2025.
In light of ONEOK's underperformance against the S&P 500 Index and the First Trust Nasdaq Oil & Gas ETF, investors might reconsider their business strategy, given factors such as the stock price decline, revenue and earnings dynamics, financial ratios, and potential concerns about financial leverage in a rising interest rate environment. Moreover, despite the positive impact of the EnLink and Medallion acquisitions on ONEOK's adjusted EBITDA, the considerable stock price drop, negative analyst sentiment, and variety in price targets may pose challenges for investors who are focusing on the finance and investing aspects of the business.
