ONEOK Inc. (NYSE:OKE) — This is an integrated energy company that markets, transports, stores and trades natural gas liquids. Its distribution segment is the largest gas utility in Kansas and Oklahoma, and the third largest in Texas.
Earnings have increased each of the past six years, and estimates are that the company will report $2.10 in 2013, up from $1.79 in 2012. OKE has a dividend yield of 3%, and dividend increases are expected semiannually.
Since October, OKE has been consolidating in a bull channel with support at its 200-day moving average. But in July, it broke through the top of its bull channel making a new high at $46.
Profit-taking on a minor quarterly earnings miss brought it down to $42 where it quickly reversed with a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR). Its stochastic is close to issuing a buy signal, and accumulation in June and July was high.
Traders should buy OKE at the market with a target of $50. Long-term buyers should take a position in the stock for growth and dividend increases.