OGE Energy (OGE) stock is back in focus after the company reported softer first quarter earnings while confirming long term Electric Service Agreements to power multiple Google data centers in Oklahoma using new solar backed capacity.

Despite the softer quarter, the stock has held firm, with a 90 day share price return of 10.46% and an 11.57% year to date share price return. The 5 year total shareholder return of 74.36% points to momentum that has built over time rather than faded on short term news.

If you are looking beyond utilities and data center power plays, this could be a useful moment to see what else is setting up in the grid and transmission space via our 36 power grid technology and infrastructure stocks

With OGE Energy trading near its analyst price target and showing a 5 year total shareholder return of 74.36%, the key question now is simple: is there still upside here, or has the market already priced in the Google data center growth story?

Most Popular Narrative: 4.1% Undervalued

With OGE Energy last closing at $47.84 against a narrative fair value of $49.86, the current pricing sits just below what the most followed narrative suggests, and that view leans heavily on how multi year demand and capital plans play out.

Robust, multi year electricity demand growth driven by sustained residential and commercial customer expansion, new large scale projects, and the increasing electrification of the regional economy (including potential data center development and economic diversification), positions OGE for continued top line revenue increases.

Want to see what has to happen for that valuation to hold up? The narrative leans on steady revenue growth, improving margins and a richer earnings multiple. Curious which assumptions really do the heavy lifting here? The full breakdown joins those pieces into one clear fair value story.

Result: Fair Value of $49.86 (UNDERVALUED)

However, this story can change quickly if weather driven demand undershoots expectations, or if rising capital needs and interest costs squeeze future profitability assumptions.

Another View: Multiples Tell a Different Story

That 4.1% undervalued narrative sits awkwardly next to OGE Energy's current P/E of 21.5x. The stock trades above its fair ratio of 20x, even though it is slightly cheaper than the US Electric Utilities industry at 22x and peers at 26.6x. That gap suggests limited wiggle room if sentiment cools.

To see how this valuation could shift if the market leans more on earnings comparisons rather than narratives, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and concern feels familiar, consider it your cue to examine the details carefully now and form your own view using our 2 key rewards and 2 important warning signs

Looking for more investment ideas?

If you stop with just one stock, you miss the real edge. Use this moment to scan wider and line up your next few potential opportunities.

• Target resilience first by checking companies that stand out in our 70 resilient stocks with low risk scores.
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• Spot potential future standouts before the crowd with the screener containing 25 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.