ONEOK Stock Looks Undervalued, Ready to Move Up?

Here is why we think ONEOK (OKE) stock deserves consideration as a value stock. It is currently trading nearly 38% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable fundamentals for its level of valuation.

• Reasonable Revenue Growth: 46.4% LTM and 11.9% last 3 year average.
• Cash Generative: Nearly 10.3% free cash flow margin and 19.6% operating margin LTM.
• No Major Margin Shocks: ONEOK has avoided any large margin collapse in the last 12 months.
• Modest Valuation: Despite encouraging fundamentals, OKE stock trades at a PE multiple of 14.1
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better operating margins

As a quick background, ONEOK provides natural gas gathering, processing, storage, and transportation services in the U.S., along with owning a parking garage and leasing office space in Tulsa, Oklahoma.

Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds – likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell OKE Stock to see if ONEOK still has an edge that holds up under the hood.

Stocks Like These Can Outperform. Here Is Data

Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
• Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
• Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.

But Consider The Risk

That said, OKE hasn’t been immune to big drops. It fell 42% during the Dot-Com Bubble and took a 65% hit in the Global Financial Crisis. The Covid pandemic was even tougher, with an 80% plunge from peak to bottom. Smaller shocks like 2018 and the Inflation Shock still knocked it down around 27-29%. Solid fundamentals don’t make it crash-proof. When the market turns, OKE can still get hit hard.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read OKE Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.