Williams Companies (NYSE: WMB) stock is up about 1.8% in midday trading after the company reported its fourth quarter and full-year 2025 earnings. The headline numbers were mixed.
Adjusted earnings per share of 55 cents came in 2 cents below the forecast of 57 cents. However, revenue of $3.2 billion was higher than the forecast of $3.1 billion.
Normally, results like that would send a stock lower, but both numbers were part of the company’s record results.
And when you’re breaking records, investors will give you leeway for not clearing a low bar.
It’s been a mixed season for energy stocks, particularly with the integrated big oil companies. However, Williams Companies is in the midstream sector.
Williams is responsible for transporting natural gas and natural gas liquids across the United States. In fact, the company delivers approximately 1/3 of the country's natural gas.
Investing in the Here and Now
Investors are frequently told to skate to where the puck is going. In the energy sector in 2026, that’s meant funding nuclear energy, which is back in favor. However, even with an administration looking to cut red tape, this story will take years to play out due to the regulatory hurdles that must be cleared.
The bullish thesis for Williams Company centers on demand for natural gas. In its Analyst Day presentation, the company cited a Wood Mackenzie North America Gas report that forecast a 35% increase in natural gas demand over the next decade. The three major catalysts will be:
- Industrialization: Demand will come from the reshoring of the U.S. energy-intensive manufacturing sectors.
- Power Generation: This will largely come from the energy required to power artificial intelligence (AI).
- LNG Growth: Williams is one of the largest exporters of liquefied natural gas (LNG), which is critical to many of the world’s economies.
Simply put, nuclear energy may be the future, and even oil may still have significant upside in 2026. But in the here and now—as well as the foreseeable future—natural gas is where the growth will be.
WMB Stock Looks Stretched, But May Not Be Done
WMB stock has broken out to new highs, riding a strong uptrend supported by both the 50- and 200-day simple moving averages (SMAs). The 50-day sits comfortably above the 200-day, and both are sloping higher, confirming the primary bullish trend. Price is also trading well above these key averages, signaling strong demand and a clear preference among investors to buy on modest dips rather than wait for deep pullbacks.
That said, the stock is beginning to look stretched. The relative strength index (RSI)—not shown—is near 70. That suggests the stock is getting into overbought territory. However, with the stock pushing to new 52-week highs and being supported at those levels, this could be a consolidation phase rather than a reversal in the bullish trend.
A Less Favorable Risk-Reward Profile, But a Bullish Trend for WMB
It's also important to note that WMB stock is now trading above its consensus price target. Although analysts remain bullish on the stock, it’s now within about 10% of the $76 price target issued by Jefferies on Feb. 3.
For investors, this creates a nuanced setup: the risk-reward profile for new positions is less favorable after such a strong run, but the underlying trend still argues against aggressively betting on a top. A constructive approach would be to respect the uptrend while acknowledging that the stock may need time to digest recent gains.
Pullbacks toward the rising 50-day moving average could offer more attractive entry points, while the 200-day moving average sits lower as a longer-term line in the sand for the bullish thesis. In other words, WMB looks overextended in the near term, but the technical backdrop suggests the move may not be over yet.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
The article "Williams Companies Stock Climbs as Investors Focus on Gas Demand" first appeared on MarketBeat.
