At US$78.25, Is It Time To Put ONE Gas, Inc. (NYSE:OGS) On Your Watch List?

Yahoo

06-05-2025

While ONE Gas, Inc. (NYSE:OGS) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on ONE Gas's outlook and valuation to see if the opportunity still exists.
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What Is ONE Gas Worth?
According to our valuation model, ONE Gas seems to be fairly priced at around 0.8% below our intrinsic value, which means if you buy ONE Gas today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth $78.85, then there isn't much room for the share price grow beyond what it's currently trading. Furthermore, ONE Gas's low beta implies that the stock is less volatile than the wider market.
See our latest analysis for ONE Gas
What does the future of ONE Gas look like?
NYSE:OGS Earnings and Revenue Growth May 6th 2025
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 32% over the next couple of years, the future seems bright for ONE Gas. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? OGS's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you've been keeping an eye on OGS, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.