Is ONE Gas (OGS) Still Undervalued After Recent Share Price Gains?

ONE Gas (OGS) shares have posted steady gains over the past month, up about 6%. Investors watching utility stocks may be weighing whether recent momentum might continue for this Tulsa-based natural gas provider, considering its consistent performance.

See our latest analysis for ONE Gas.

ONE Gas has steadily built momentum, not just over the last month but throughout the year. The company has seen a 17.6% year-to-date share price return and a 14.4% total shareholder return over the past twelve months. Investors may see this uptrend as a sign that confidence in the company’s growth prospects is gradually increasing, especially as the utility sector draws attention for its resilience and stability.

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With shares up and the company’s fundamentals looking strong, the question now is whether ONE Gas stock is undervalued enough to offer investors more upside or if the recent gains already price in its future growth.

Most Popular Narrative: 4.8% Overvalued

The most widely followed narrative sees fair value for ONE Gas shares a few dollars below the recent closing price, suggesting the stock trades at a slight premium despite its recent upward momentum.

Ongoing investments in infrastructure and rising commercial demand position the company for scalable expansion and enhanced long-term earnings. Robust inbound commercial and industrial demand, including interest from data centers and advanced manufacturing, creates scalable growth opportunities likely to drive incremental revenue and bolster earnings over the medium to long term.

Read the complete narrative.

Want to know what bold assumptions power this valuation? The most popular narrative expects a major leap in profits, with future growth projections more optimistic than you might think. Curious how much earnings and margins need to expand to support this price? Unlock the full narrative and see which key numbers could reshape the story.

Result: Fair Value of $76.67 (OVERVALUED)

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

However, persistent high capital spending and the company’s regional concentration could increase earnings volatility if regulatory support diminishes.

Find out about the key risks to this ONE Gas narrative.

Build Your Own ONE Gas Narrative

If you’re keen to draw your own conclusions or dive into the numbers yourself, you can quickly create and test your own outlook in just a few minutes. Do it your way.

A great starting point for your ONE Gas research is our analysis highlighting 2 key rewards and 2 important warning signs 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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