ONEOK: A Champion In Earnings Misses (Rating Downgrade)

Dair Sansyzbayev10.1K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryONEOK is downgraded to Hold after a strong 27% total return since October, with limited upside following a robust rally.OKE’s current 4.8% TTM dividend yield is less compelling versus 10-year Treasuries, and valuation appears stretched with a forward PEG of 5.2.Q4 earnings are expected to show modest sequential growth, but a muted market reaction is likely given OKE’s weak earnings surprise history.Structural tailwinds from U.S. data center and manufacturing growth support OKE’s fundamentals, but current pricing leaves little room for further appreciation. xijian/iStock via Getty Images I initiated coverage of an energy midstream company, ONEOK (OKE), in late October with a bullish thesis, and the timing was really good because it was just before the optimism around AI techThis article was written byDair Sansyzbayev10.1K FollowersFollowI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity research and analysis of public companies. This interest has led me to render equity research services for a Dubai-based family office with over $20 million in assets under management (AUM). My expertise in finance allows me to provide valuable insights and recommendations to clients seeking to make informed investment decisions.I pride myself on my ability to analyze financial statements, evaluate market trends, and identify key drivers of growth in different industries. I am passionate about staying up-to-date on the latest developments and trends in the equity research industry, and I am always seeking to enhance my skills and knowledge through continuing education and professional development.Analyst’s Disclosure: I/we have a beneficial long position in the shares of OKE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.