First, let's understand what's at play here. For instance, local production from natural gas could decline, which would have a meaningful impact on ONEOK's near-term prospects and balance sheet.īut I get ahead of myself. You have to be humble enough to admit that at times, things totally out of your or management's control happen. That's a promising position to be in, while obviously acknowledging that no strategy works well under all conditions. And most importantly, you want to see that in the past month, those estimates are inflicting higher. When you are investing, you want to be positioned in a stock where analysts are upwards revising their revenue targets. However, as you'll see, there are ample reasons to assume that ONEOK will continue to report strong growth rates in the near term.īut before going further in, there's an aspect that is worthwhile highlighting here. ONEOK's Revenue Growth Rates Will Improve Further, Near TermĪs you can see above, ONEOK saw its revenues increase meaningfully throughout 2021. In sum, this is an interesting investment opportunity. is very strong, which will support its share price to a great extent. On the other hand, near-term natural gas demand in the U.S. On the other hand, this is a seriously leveraged business, without that much room for aggressive growth. There's a lot more here at play that makes this investment interesting, beyond its dividend. While I understand that it offers a 5.4% dividend yield, I don't make my bullish thesis based on that angle. With natural gas prices likely to remain elevated, this business is attractively priced. ONEOK ( NYSE: OKE) owns natural gas pipelines and processing facilities. Bjdlzx/E+ via Getty Images Investment Thesis
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