Is ONEOK (OKE) Undervalued? A Fresh Look at the Stock’s Discount to Fair Value

ONEOK (OKE) shares have seen mixed movement lately. The stock finished the last trading day up slightly at $68.53. Investors are paying close attention to recent trends in the energy sector to gauge the stock's future direction.

See our latest analysis for ONEOK.

This latest uptick comes after a challenging period for ONEOK, as the share price remains under pressure with a 1-year total shareholder return of -26.3%. Although momentum has faded in recent months, the stock's longer-term performance shows substantial gains, delivering a total return of 217.8% over five years. The recent softness likely reflects shifting sentiment around energy markets and changes in perceived risk.

If you're keeping an eye on how energy stocks are evolving, it may be a good time to broaden your investing search and discover fast growing stocks with high insider ownership

With shares trading well below analyst targets and fundamentals pointing to continued growth, the question remains: is ONEOK trading at a discount, or is the market already factoring in all of its future potential?

Most Popular Narrative: 26.6% Undervalued

With a narrative fair value of $93.32 per share and a last close price of $68.53, supporters see notable upside potential if key assumptions hold. The gap reflects upbeat projections for future growth and improved profitability that may not yet be fully priced in by the market.

Ongoing expansions and capital investments in key areas like the Permian and Delaware Basins (for example, new processing plants and pipeline connections) position ONEOK to capture incremental fee-based volumes and benefit from robust U.S. shale production. This could lead to higher top-line growth and enhanced earnings stability.

Read the complete narrative.

Curious how ambitious growth targets and optimistic future margins might shape the narrative’s valuation? The real surprise lies in the bold assumptions that drive this price estimate. Are you ready to see what experts think could propel this stock much higher?

Result: Fair Value of $93.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still risks to watch, including ongoing commodity price volatility and the integration challenges from recent major acquisitions. These factors could affect future growth.

Find out about the key risks to this ONEOK narrative.

Build Your Own ONEOK Narrative

If you have a different perspective or want to dig deeper into your own analysis, it's quick and easy to build your own view of ONEOK. Do it your way

A great starting point for your ONEOK research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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