OGE Energy Corp. (NYSE:OGE) is included among the 10 High Yield Utility Stocks to Buy in 2026. Analyst Downgrades OGE Energy (OGE) to 'Underweight' OGE Energy Corp. (NYSE:OGE), through its subsidiary, operates as an energy services provider in the United States. OGE Energy Corp. (NYSE:OGE) had a setback on January 20 when Wells Fargo downgraded the stock from ‘Equal Weight’ to ‘Underweight’. The firm also decreased its price target on OGE from $45 to $39. The analyst noted that the utility’s shares trad ...

Group 1: Company Overview - OGE Energy Corp. is a holding company primarily engaged in providing electricity in Oklahoma and western Arkansas, operating mainly through its electric utility business [5] Group 2: Analyst Ratings and Price Targets - RBC Capital analyst Stephen D'Ambrisi raised the price target on OGE Energy Corp. to $51 from $49 while maintaining a Sector Perform rating, ahead of the fourth-quarter earnings in the utilities sector [2] - BMO Capital initiated coverage of OGE Energy with a Market Perform rating and a $45 price target, citing a supportive fundamental backdrop and generation capacity needs as opportunities for capital investment [4] Group 3: Sector Trends - The utilities sector has experienced frequent changes in capital deployment plans over the past 18 months, with many utilities providing early or off-cycle previews of revised capital plans, prompting RBC to adjust its sector models [3]

Group 1 - The article does not contain relevant information regarding company or industry analysis [1]

Group 1 - The utilities sector, particularly OGE Energy, has faced challenges as the anticipated benefits of artificial intelligence have not materialized as expected [1] - OGE Energy has been identified as one of the companies negatively impacted by the fading enthusiasm for AI in the utilities sector [1] Group 2 - The article reflects a broader trend where the initial optimism surrounding AI's impact on utilities has diminished, leading to a reassessment of investment opportunities in this space [1]

Group 1 - The utilities sector, particularly OGE Energy, has faced challenges as the anticipated benefits of artificial intelligence have not materialized as expected [1] - OGE Energy has been identified as one of the companies negatively impacted by the fading enthusiasm for AI in the utilities sector [1] Group 2 - The article reflects a long-term investment perspective, emphasizing value over growth in the context of OGE Energy's performance [1]

Core Viewpoint - OGE Energy is currently viewed as a more attractive investment option compared to American Electric Power based on valuation metrics and earnings outlook [3][7]. Valuation Metrics - OGE Energy has a forward P/E ratio of 18.84, while American Electric Power has a forward P/E of 19.59 [5]. - OGE's PEG ratio is 2.70, compared to AEP's PEG ratio of 3.03, indicating OGE may offer better value relative to its expected earnings growth [5]. - OGE's P/B ratio stands at 1.8, whereas AEP's P/B ratio is 1.97, further supporting OGE's valuation advantage [6]. Earnings Outlook - OGE Energy has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while American Electric Power holds a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for OGE suggests stronger estimate revision activity compared to AEP [7]. Value Grades - OGE Energy has received a Value grade of B, while American Electric Power has a Value grade of C, reflecting OGE's more favorable valuation metrics [6].

Core Viewpoint - OGE Energy Corp. is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its consistent infrastructure investments and expansion of renewable generation assets [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for OGE's 2025 earnings per share is $2.28, reflecting a year-over-year growth of 4.1% [2] - The consensus estimate for 2025 sales is $3.28 billion, indicating a year-over-year growth of 9.8% [2] - OGE's long-term earnings growth rate is projected at 7% over the next three to five years [2] - The company has delivered an average earnings surprise of 10.45% over the last four quarters, beating estimates in two quarters and missing in two [2] Return on Equity - OGE's return on equity (ROE) stands at 10.77%, surpassing the industry average of 9.9%, indicating more efficient utilization of funds compared to peers [3] Return to Shareholders - OGE Energy has been enhancing shareholder value through consistent dividend payments, currently offering a dividend yield of 3.95%, which is higher than the industry average of 3.22% [4] Infrastructure Investments & Renewable Focus - OGE plans to invest $6.50 billion in infrastructure from 2025 to 2029 to improve the safety, resiliency, and reliability of its transmission and distribution grids [5][8] - The company is expanding its renewable generation assets, owning several wind farms and solar sites, and aims to add more resources with zero greenhouse gas emissions [6][8] Stock Price Performance - Over the past year, OGE shares have increased by 2.8%, while the industry has seen a growth of 20.2% [7]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider OGE Energy and IdaCorp as potential undervalued stocks, with OGE being highlighted as the superior value option based on various valuation metrics [1][6]. Valuation Metrics - Both OGE Energy and IdaCorp currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - OGE has a forward P/E ratio of 18.72, while IdaCorp has a forward P/E of 21.52, suggesting OGE may be more attractively priced [5]. - OGE's PEG ratio is 2.68, compared to IdaCorp's PEG ratio of 2.69, indicating similar expected earnings growth rates [5]. - OGE's P/B ratio is 1.79, while IdaCorp's P/B ratio is 1.95, further supporting OGE's position as a more favorable value stock [6]. - Based on these metrics, OGE holds a Value grade of B, while IdaCorp has a Value grade of C, reinforcing the conclusion that OGE is the better value option [6].

Core Viewpoint - OGE Energy Corp. is recognized as a strong investment option, particularly for retirement portfolios, due to its consistent dividend growth and strategic expansion plans to meet rising energy demand [1][3]. Group 1: Dividend Information - OGE Energy announced a dividend of $0.425 per share, payable on January 30, 2026, to shareholders on record as of January 5, 2026 [3]. - The company has increased its dividend payouts for 19 consecutive years, resulting in an annual dividend yield of 3.96%, positioning it among the top utility dividend stocks [3]. Group 2: Expansion and Investment - OGE Energy is actively investing in expansion to address the anticipated surge in energy demand driven by the AI boom and rapid industrialization [4]. - The company launched a public offering of $345 million in common stock, with an additional option for underwriters to purchase up to $51.75 million in shares, aimed at funding capital expenditures and refinancing debt [4]. Group 3: Market Position and Analyst Ratings - Barclays has reiterated a 'Buy' rating for OGE Energy, setting a price target of $51, indicating an upside potential of over 18% [5].

Core Insights - OGE Energy Corp. is positioned for stronger long-term performance through ongoing capital investments, carbon-reduction initiatives, and a robust renewable generation portfolio [1] - The company is expanding its renewable portfolio to capture incentives from large clean-energy investments [2] - OGE Energy plans to invest $6.50 billion from 2025 to 2029 to upgrade infrastructure and enhance grid reliability [3] - The company expects long-term earnings growth of 5-7% and aims to reward shareholders with steady dividend hikes [4] - Supply-chain disruptions and rising production costs pose risks to OGE Energy's project timelines [5][6] - OGE Energy's share price has increased by 2.8% over the past year, compared to the industry's 18.9% growth [7] Factors Supporting OGE Energy - The company operates several wind farms with a total capacity of nearly 450 MW and solar sites with 32.2 MW as of December 31, 2024 [2] - OGE Energy offers voluntary renewable programs for Oklahoma retail customers and plans to add more zero-emission resources [2] - The planned capital spending of $6.50 billion represents a 4% increase from the previous five-year plan of $6.25 billion [3] Challenges Facing OGE Energy - Supply-chain disruptions due to raw material inflation, logistical challenges, and component shortages may delay construction and equipment deliveries [5] - Rising electricity production costs, driven by increased fuel prices and inflation, have led to an 11% year-over-year surge in fuel, purchased power, and transmission expenses in Q3 2025 [6] Share Price Performance - OGE Energy's shares have risen 2.8% in the past year, while the industry has seen an 18.9% growth [7]