ONEOK (OKE): Is There Value Opportunity in Its Latest Share Price Move?

ONEOK (OKE) shares edged up on Tuesday, with the stock finishing the trading day at $72.89. Investors seem to be weighing the company’s longer-term performance in light of recent market moves and sector trends.

See our latest analysis for ONEOK.

ONEOK’s stock action has been relatively muted lately, with limited short-term momentum. However, long-term holders are still up thanks to a five-year total shareholder return of 2.4%. Sentiment appears to be shifting as investors refocus on the company’s steady fundamentals and recent sector moves.

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With ONEOK now trading well below analysts’ targets, investors are left to wonder if the current share price offers real value or if the market has already factored in all the company’s future growth potential.

Most Popular Narrative: 23.2% Undervalued

With ONEOK closing at $72.89 and the most widely followed narrative assigning a fair value near $95, this valuation stands well above today’s trading level. The narrative sets the stage for a debate over whether the company’s growth initiatives and global trends are fully reflected in the current price.

Persistent growth in global demand for U.S. natural gas and NGLs, driven by increasing international energy needs and continued coal-to-gas switching, supports long-term volume throughput and higher utilization rates across ONEOK's midstream and export infrastructure. This directly underpins future revenue and EBITDA growth. Ongoing expansions and capital investments in key areas like the Permian and Delaware Basins, such as new processing plants and pipeline connections, position ONEOK to capture incremental fee-based volumes and benefit from robust U.S. shale production. The result is higher top-line growth and enhanced earnings stability.

Read the complete narrative.

Curious what kind of aggressive projections drive such a big valuation gap? There’s a bold blend of future earnings growth and profit margin optimism behind the estimate. Want to see which assumptions make this number possible? Dive in for the complete story.

Result: Fair Value of $94.94 (UNDERVALUED)

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

However, tighter commodity price spreads and increased leverage from recent acquisitions could quickly challenge the bullish long-term outlook for ONEOK’s growth.

Find out about the key risks to this ONEOK narrative.

Build Your Own ONEOK Narrative

If you feel differently about these projections or want to craft your own investment thesis, it only takes a few minutes to analyze the numbers and shape your own view. 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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