ONE Gas, Inc.’s (NYSE:OGS) Share Price Could Signal Some Risk
With a median price-to-earnings (or “P/E”) ratio of close to 18x in the United States, you could be forgiven for feeling indifferent about ONE Gas, Inc.’s (NYSE:OGS) P/E ratio of 18.2x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
The recently shrinking earnings for ONE Gas have been in line with the market. The P/E is probably moderate because investors think the company’s earnings trend will continue to follow the rest of the market. If you still like the company, you’d want its earnings trajectory to turn around before making any decisions. At the very least, you’d be hoping that earnings don’t accelerate downwards if your plan is to pick up…
