ET vs. OKE: Which Stock Should Value Investors Buy Now?
Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with Energy Transfer LP (ET) and Oneok Inc. (OKE). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Energy Transfer LP and Oneok Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ET is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ET currently has a forward P/E ratio of 12.53, while OKE has a forward P/E of 16.23. We also note that ET has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 1.72.
Another notable valuation metric for ET is its P/B ratio of 1.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OKE has a P/B of 2.42.
These metrics, and several others, help ET earn a Value grade of A, while OKE has been given a Value grade of C.
ET sticks out from OKE in both our Zacks Rank and Style Scores models, so value investors will likely feel that ET is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Energy Transfer LP (ET) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
9 hours ago
- Newsweek
NASCAR Teases Imminent Major Announcement Ahead Of Michigan Cup Race
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. NASCAR has confirmed that a major partner announcement will be made today at the Michigan International Speedway at 1 p.m. ET. The announcement comes during the NASCAR Truck and Cup Series race weekend in Michigan and will be made ahead of the Cup Series FireKeepers Casino 400, which begins at 2 p.m. ET. It stated in a media alert that, "A major NASCAR partner announcement will be made on the pre-race stage at Michigan International Speedway for fans and media in attendance." #NASCAR will announce a new major partner on the pre-race stage tomorrow at 1 PM ET before the FireKeepers Casino 400 at Michigan. Hmm... What could it be? 😂 — Toby Christie (@Toby_Christie) June 7, 2025 Although it has not been confirmed what the announcement will be, many expect it to be to confirm the return of Dodge RAM as a manufacturer to the Craftsman Truck Series. Stewart Friesen, driver of the #52 Halmar International Toyota, celebrates with a burnout after winning the NASCAR Craftsman Truck Series DQS Solutions & Staffing 250 Powered by Precision Vehicle Logistics at Michigan International Speedway on... Stewart Friesen, driver of the #52 Halmar International Toyota, celebrates with a burnout after winning the NASCAR Craftsman Truck Series DQS Solutions & Staffing 250 Powered by Precision Vehicle Logistics at Michigan International Speedway on June 07, 2025 in Brooklyn, Michigan. MoreIf the iconic American car brand returns to the sport, it will be the first time a RAM has raced in the Truck Series since 2016. Commissioner of NASCAR Steve Phelps previously explained to Sports Business Journal: "We are having robust discussions with a number of [original equipment] partners that someday, if I had to guess and were a betting man, something is going to hit. "I just don't know with whom or the timing of that. I know that's an answer I've given repeatedly over the last five years, but they're facts. There's no BS in the comment I just made." If this is true, Dodge RAM would join Toyota, Chevrolet, and Ford as the fourth OEM in the racing series. On top of the rumors of Dodge returning to the Truck Series, there is also speculation that YouTuber turned racer Cleetus McFarland (Garrett Mitchell) could be racing with the team. NASCAR Cup Series FireKeepers Casino 400: Starting Grid
Yahoo
a day ago
- Yahoo
Is Energy Transfer the All-American Dividend Stock for You? Consider This High-Yielder Instead.
Energy Transfer has a lofty 7.4% yield backed by an inherently domestic business. The midstream giant has made some decisions that should leave conservative investors with trust issues. Enterprise Products Partners' 6.9% yield will likely be a better fit for most investors. 10 stocks we like better than Energy Transfer › Dividend investors are always trying to maximize yield, but that requires extra consideration on the risk front. A high yield that isn't backed by a reliable company could leave you in the lurch and, likely, at the worst possible time. This is why investors looking at Energy Transfer (NYSE: ET) and its lofty 7.5% distribution yield will probably be better off taking a little less yield and choosing Enterprise Products Partners (NYSE: EPD) instead. Here's why. Energy Transfer and Enterprise are two of the largest midstream companies in North America. They both hail from the United States and generate most of their business from the country. The truth is, owning energy infrastructure assets like pipelines essentially forces these two businesses to be American at heart. After all, you can't move oil around the United States on a pipeline that gets built in Europe. That pipeline has to get built on U.S. soil. The midstream is actually the most boring segment of the overall energy sector. That's because businesses like Energy Transfer and Enterprise charge fees for the use of their assets. Although the oil, natural gas, and other products that flow through the system may have volatile prices, midstream companies don't really care about the price of what they move. They just care about the volume of product they move. The higher the volume, the higher the toll-like revenues they generate. Given the importance of energy to the global economy, demand for oil and natural gas tends to remain fairly robust even when commodity prices are weak. Even recessions don't materially diminish demand, since the world would, literally, stop in its tracks without oil and natural gas. From this perspective, Energy Transfer and Enterprise Products Partners are on equal footing. Here's the thing: Energy Transfer doesn't have the same history of treating its investors well as Enterprise does. That difference is why conservative income investors should be happy to trade down to Enterprise's 6.9% yield. The first big issue happened in 2016, during a time when oil prices were weak. At that point, Energy Transfer agreed to buy peer Williams. It got cold feet, warning that completing the deal would require taking on too much debt and could also force a dividend cut. It was the right decision to scuttle the deal. The problem was the way in which it achieved that end. The company sold convertible securities, with a huge portion going to the then-CEO. It appears that the convertible securities would have protected the CEO from the effect of a dividend cut, had a dividend cut been needed. In the end, Energy Transfer got out of the Williams deal, but that convertible decision should leave a bad taste in investors' mouths. Then, in 2020, when the energy industry was hit hard by demand declines around the coronavirus pandemic, Energy Transfer cut its distribution. Again, the decision was probably the right one for the business, which used the freed-up cash to strengthen its balance sheet. But income investors took it on the chin, and that's the key takeaway here. During the last two big energy industry downturns, when income investors were likely hoping for consistency, they had to worry about, and actually experience, income declines if they owned Energy Transfer. Enterprise Products Partners didn't cut its distribution in 2016 or in 2020. It didn't put out any warnings that such an event was possible. It just operated its reliable cash flow generating business. Along the way, it delivered distribution increases. At this point, the U.S. midstream giant has increased its distribution for 26 consecutive years. While trust might be a troubling issue with Energy Transfer, it isn't with Enterprise Products Partners. The long streak of putting unitholders first is a core reason to like Enterprise Products Partners, but it isn't the only reason. Other good reasons to like this midstream giant are its investment grade rated balance sheet, and the 1.7x over that its distributable cash flow covered its distribution in 2024. These are both signs of management's commitment, since they mean there's a lot of leeway before a distribution cut would be in the cards at Enterprise Products Partners. Put it all together, and most investors will probably be better off with all-American Enterprise over all-American Energy Transfer. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Is Energy Transfer the All-American Dividend Stock for You? Consider This High-Yielder Instead. was originally published by The Motley Fool
Yahoo
a day ago
- Yahoo
Why Astrazeneca (AZN) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. AstraZeneca plc, headquartered in London, UK, is one of the largest biopharmaceutical companies in the world. AstraZeneca was formed on Apr 6, 1999, through the merger of Sweden's Astra AB and UK's Zeneca Group plc. AstraZeneca's business can be broken down into separate lines based on therapeutic classes. These include CVRM (cardiovascular, renal and metabolism), Respiratory & Immunology (R&I), Oncology, Rare Diseases, Vaccines and Other. AZN sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 9.3% and 6.7% year-over-year, respectively. Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0 to $4.49 per share. AZN also boasts an average earnings surprise of 4.2%. On a historic basis, Astrazeneca has generated cash flow growth of 18.6%, and is expected to report cash flow expansion of 16.7% this year. Investors should take the time to consider AZN for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
