Why Oneok Inc. (OKE) is a Top Momentum Stock for the Long-Term

Oneok Inc. (OKE), an energy company that recently expanded its midstream operations with the $18.8 billion acquisition of Magellan Midstream Partners, is being highlighted by Zacks as a top momentum stock. Despite holding a Zacks Rank #3 (Hold), OKE boasts a strong Momentum Style Score of A and a VGM Score of B, supported by a 1.9% share price increase over the last four weeks. This positive sentiment is further reinforced by three analysts revising their fiscal 2025 earnings estimates upwards in the past 60 days, raising the Zacks Consensus Estimate to $5.58 per share.

Analysis

Oneok Inc. (OKE) presents a compelling case for momentum-focused investors, supported by quantitative signals despite a neutral Zacks Rank #3 (Hold). The stock has been assigned a top-tier Momentum Style Score of 'A' and a solid overall VGM Score of 'B', reflecting positive underlying trends. This is evidenced by a 1.9% share price increase over the last four weeks and, more fundamentally, by upward revisions to its earnings outlook. Specifically, three analysts have raised their fiscal 2025 earnings estimates within the past 60 days, elevating the Zacks Consensus Estimate by $0.35 to $5.58 per share. The company's strategic profile has also been significantly enhanced by the recent $18.8 billion acquisition of Magellan Midstream Partners, which diversifies its business into the primarily fee-based refined products and crude oil transportation sectors. While OKE has a modest historical average earnings surprise of +0.4%, the positive revisions to future earnings are a more significant forward-looking indicator.

Key Decisions for Investors

• Investors with a momentum-driven strategy should consider the stock's 'A' Momentum Score and positive FY2025 earnings estimate revisions as a strong bullish signal, suggesting its recent strength may continue.
• Given the neutral Zacks Rank #3 (Hold), a more cautious approach would involve monitoring whether the positive momentum can be sustained and translate into a ratings upgrade, as the current 'Hold' may imply valuation is already considered fair.
• Long-term investors should focus on the successful integration of the Magellan Midstream acquisition, as the realization of synergies and the shift toward more stable, fee-based revenues will be critical for sustained value creation beyond the current momentum cycle.