The Williams Companies, Inc. (WMB), headquartered in Tulsa, Oklahoma, is an energy infrastructure company focused on providing vital natural gas transportation and infrastructure solutions across North America. With a market cap of $69.2 billion, Williams plays a critical role in the energy sector, offering a wide range of services that include natural gas gathering, processing, and transportation.
Williams Companies stock has outperformed the broader market considerably over the past year. The stock has gained 62.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024, WMB stock is up 62.9%, surpassing SPX’s 25.5% rise on a YTD basis.
Zooming in further, WMB’s outperformance looks more pronounced compared to the Energy Select Sector SPDR Fund (XLE). The exchange-traded fund has gained 12.4% over the past year. Moreover, WMB’s gains on a YTD basis outshine the ETF’s 11.9% returns over the same time frame.
Williams Companies’ shares gained more than 4% after the company reported its Q3 results on Nov. 6. Its adjusted EPS amounted to $0.43, slightly surpassing the consensus estimates of $0.42. Revenue for the quarter totaled $2.65 billion, marking a 3.7% year-over-year increase and in line with analyst expectations.
Also, the company's record Q3 adjusted EBITDA of $1.7 billion, a 3% increase, was driven by growth in natural gas transmission and recent acquisitions, including Gulf Coast storage assets. Williams also raised its full-year 2024 adjusted EBITDA guidance by $125 million to a midpoint of $7.1 billion.
For the current fiscal year, ending in December, analysts expect Williams Companies’ EPS to grow 5.2% to $2.01 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering WMB stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago when eight analysts suggested a "Strong Buy."
On Nov. 7, Gabe Moreen from Mizuho Securities maintained a “Buy” rating on Williams Companies.
While WMB is currently trading at a premium to the mean price target of $52.05, the Street-high price target of $61 suggests a 7.5% upside potential.
- Did Weather Play a Role in Wednesday Morning's Markets?
- Can Natural Gas Rally?
- Bottom 100 Stocks to Buy: New Fortress Energy Is the Largest. But Is It a Speculative Buy?
- Has the "Trump Trade" Killed King Gold?
