The Williams Companies, Inc. (WMB), founded in 1908 and headquartered in Tulsa, Oklahoma, is a leading player in the energy sector, primarily focused on transporting and storing natural gas. With a market cap of $66.5 billion, Williams operates a vast network of pipelines and infrastructure, delivering critical energy solutions across North America.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Williams Companies is firmly positioned within this category. With a strong track record of financial performance and a focus on natural gas transportation and storage, Williams excels in the energy sector. Its vast pipeline network and commitment to sustainability, alongside ongoing investments in clean energy solutions, solidify its leadership role in North America's energy infrastructure.
Williams Companies is currently trading 9.6% below its 52-week high of $60.36, reached on Nov. 22. Shares of Williams Companies gained 21.8% over the three months, outperforming the broader S&P 500 Index's ($SPX) 9.8% gains during the same time frame.
Over the longer term, WMB has delivered a YTD gain of 56.6%, outperforming SPX’s 26.5% return. Additionally, over the past 52 weeks, WMB saw a 53.6% increase, surpassing SPX's strong 31.1% growth during the same period.
To confirm the recent bullish trend, WMB has consistently traded above its 50-day moving average since early August and above its 200-day moving average since mid-February.
Williams Companies’ shares rose over 4% following the release of its Q3 earnings results on Nov. 6. The company reported adjusted EPS of $0.43, slightly exceeding the consensus estimate of $0.42. Revenue for the quarter was $2.65 billion, reflecting a 3.7% year-over-year increase and meeting analyst expectations.
Williams also posted a record Q3 adjusted EBITDA of $1.7 billion, a 3% increase, driven by growth in natural gas transmission and recent acquisitions, such as Gulf Coast storage assets. In addition, the company raised its full-year 2024 adjusted EBITDA guidance by $125 million, now targeting a midpoint of $7.1 billion.
Williams Companies has outpaced its competitor, Enbridge Inc. (ENB), which has reported a 17.5% gain on a YTD basis and rose 21.2% over the past 52 weeks.
Given that WMB is outperforming the broader sector, analysts maintain a moderately bullish outlook on the stock. Of the 20 analysts covering it, the consensus rating is “Moderate Buy,” with a mean price target of $57.37, indicating a potential upside of 5.2% from its current level.
