The Williams Companies, Inc. (WMB), headquartered in Tulsa, Oklahoma, operates as an energy infrastructure company that explores, produces, transports, sells, and processes natural gas and petroleum products. Valued at $49.57 billion by market cap, the company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. WMB owns and operates 33,000 miles long pipeline.
Shares of this leading midstream energy company outperformed the broader market considerably over the past year. WMB has gained 41.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.2%. In 2024 alone, WMB stock is up 16.8%, surpassing SPX’s 11.2% rise on a YTD basis.
Zooming in further, WMB’s outperformance is also apparent compared to the VanEck Energy Income ETF (EINC). The exchange-traded fund has gained about 28.6% over the past year. Moreover, WMB’s gains on a YTD basis outshine the ETF’s 11.9% returns over the same time frame.
On May 6, WMB reported its Q1 results, with its adjusted net income rising 5.1% year over year to $719 million and adjusted EPS coming in at $0.59, rising 5.4% over the prior-year quarter. The company’s adjusted EBITDA increased 7.7% year over year to $1.93 billion. For 2024, WMB expects adjusted EBITDA at the top half of its guidance range of between $6.8 billion and $7.1 billion. The stock gained over 1% on the earnings release day and has maintained an uptrend since then.
For the current fiscal year, ending in December, analysts expect WMB to report an EPS decline of 3.1% to $1.85 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering WMB stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” 12 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, with eight suggesting a “Strong Buy” and three giving a “Moderate Buy.”
Recently, Wells Fargo & Company maintained its “Equal-Weight” rating on WMB stock and raised its target price from $37 to $38, implying a potential downside of 6.6% from current levels.
The mean price target of $40.30 represents a marginal downside from WMB’s current price levels. However, the Street-high price target of $47 suggests an upside potential of 15.6%.
On the date of publication, Dipanjan Banchur 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.
