The Williams Companies Shows Strong Growth Amid Recent Stock Decline

Based in Tulsa, Oklahoma, The Williams Companies, Inc. (WMB) is a significant player in the energy infrastructure sector, primarily in the United States. With a market capitalization of $65.9 billion, WMB operates through various segments, including Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services.

Position in the Market

WMB falls into the category of “large-cap stocks,” which includes companies valued at $10 billion or more. As a prominent entity in the Oil & Gas Midstream industry, WMB maintains a diverse portfolio, including interstate natural gas pipelines, natural gas storage facilities, and services related to crude oil production and transportation.

Recent Stock Performance

Despite its robust fundamentals, WMB has experienced a decline of nearly 10.5% from its all-time high of $61.46, reached on January 22. In the last three months, the stock has seen a minor decrease, although it has fared better than the Nasdaq Composite (NASDAQ: NASX), which declined by 12.8% in that same period.

Long-Term Growth Trends

Over the long run, WMB has shown considerable growth, with a surge of 20.6% over the past six months and an impressive 49.9% increase over the last year. This performance stands in stark contrast to the Nasdaq’s modest returns of only 9.1% during the same period.

To further validate this upward trend, WMB’s stock has consistently remained above its 200-day moving average over the past year. However, it recently slipped below its 50-day moving average.

Financial Results and Comparisons

WMB also delivered strong financial results, with its stock rising 4.8% following the announcement of its Q4 earnings on February 12. The company reported total revenues of $10.5 billion and operating income of $3.3 billion for the fiscal year. In Q4 alone, WMB achieved an adjusted net income of $579 million, leading to an adjusted EPS of $0.47, which exceeded Wall Street forecasts by 4.4%.

Nevertheless, WMB has not quite matched the performance of its peer, Kinder Morgan, Inc. (KMI), which saw a 23.8% increase in the last six months and a 46.6% surge over the past year.

Analyst Outlook

Analysts view WMB’s future positively, assigning a consensus rating of “Moderate Buy” among the 20 experts covering the stock. The average price target of $60.05 suggests a potential upside of 9.2% from current levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please review the Barchart Disclosure Policy here.

The opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.