The Williams Companies, Inc. (WMB) is a leading energy infrastructure provider, valued at $53.9 billion by market cap. Based in Tulsa, Oklahoma, the company specializes in the transportation, processing, and marketing of natural gas and natural gas liquids.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Williams fits this criterion perfectly, exceeding the mark. Williams is renowned for its extensive network of 33,000 miles of pipelines across North America, making it one of the largest domestic transporters of natural gas. Also, its innovative use of decommissioned pipelines for fiber optic telecommunications set a precedent in integrating energy infrastructure with modern technology.
However, the pipeline operator is down 3.4% from its 52-week high of $45.81, achieved on Aug. 30. Shares of WMB are 6.9% up over the past three months, outpacing the First Trust Nasdaq Oil & Gas ETF’s (FTXN) 5.6% loss over the same time frame.
Longer term, WMB has risen 27.1% on a YTD basis, outperforming FTXN's 1.7% gains. Moreover, shares of Williams have soared 30.8% over the past 52 weeks, compared to FTXN's 5.5% decrease over the same time frame.
To confirm the bullish price trend, WMB has been trading above its 50-day and 200-day moving average since February.
Williams has outperformed due to its substantial exposure to rising natural gas demand driven by the expansion of data centers and strong industry growth. Moreover, the stock rose 3.9% after reporting better-than-expected Q2 adjusted EPS of $0.43 per share on Aug. 5 due to the strong performance in its Transmission & Gulf of Mexico segment and successful project completions, including Transco’s Regional Energy Access. The company's positive 2024 and 2025 guidance and a 6.1% dividend increase also boosted investor confidence.
In comparison, rival Enbridge Inc. (ENB) has underperformed WMB. ENB shares have risen 21.6% over the past 52 weeks and are up 12.1% on a YTD basis.
Despite WMB’s strong price action, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 21 analysts in coverage, and as of writing, it is trading slightly below the mean price target of $44.44.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
