Oneok is the IBD Stock Of The Day. The natural gas company is in a consolidation as natgas prices soar on mixed messages between Russia and the West.
Gas soared 9.5% Wednesday as energy traders eyed what the U.S. estimates to be 150,000 Russian troops deployed near the Ukraine border. Russia claims to have withdrawn some troops from the border and from Ukraine's Crimean peninsula. Meanwhile, officials from the North Atlantic Treaty Organization say Russia continues to increases its number of troops near the border.
The uneasy situation has energy markets on edge. Europe gets about a third of its natural gas from Russia. About a quarter of that gas travels via pipelines routed through Ukraine. Analysts worry that an invasion of Ukraine could potentially upend European energy markets.
While there is only a very small link between U.S. natural gas and Europe's markets, through liquefied natural gas, the uncertainty has boosted oil prices, global natural gas prices and U.S. natgas stocks, like Oneok.
Oneok is an Oklahoma-based pipeline company that collects, processes and distributes natural gas. It has operations throughout the Williston, Powder River and Permian basins.
The company is the No.1 stock in IBD's highly ranked Oil & Gas-Transportation and Pipeline industry group. The group also includes Plains All American Pipeline and liquefied natural gas shipping company Flex LNG.
OKE Stock Near Two Possible Entry Points
Shares rose 0.4% to 62.65 on the stock market today. OKE stock started the day in a consolidation with a 66.88 buy point, according to IBD MarketSmith charts. But the stock put the final touches on a handle, lowering the base's buy point to 64.90.
Oneok Fundamentals
OKE stock has a perfect 99 out of 99 Composite Rating. The Composite Rating compiles scores according to key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
The company will report fourth-quarter results after the market closes on Feb. 28. Analysts polled by FactSet see earnings climbing 29% to 89 cents per share, with revenue up 68.7% to $4.33 billion.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.
IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
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