The Williams Companies, Inc. (WMB), headquartered in Tulsa, Oklahoma, operates in the energy sector with a market cap of $51.7 billion. The company focuses on finding, producing, gathering, processing, and transporting natural gas (NGQ24) and natural gas liquids. It is one of the largest transporters of natural gas by volume in the US. Its gas wells, pipelines, and midstream services are concentrated in the Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Williams fits right into that category with its market cap exceeding this threshold, reflecting its substantial size and influence in the energy sector. Through its acquisitions and organic growth, the company has established a strong foothold in the energy sector.
The leading midstream energy company’s stock touched its 52-week high of $42.60 in the June 20th trading session. WMB stock has gained 12% over the past three months, substantially outperforming the S&P 500 Energy Sector SPDR’s (XLE) 1.9% decline during the same time frame.
Over the longer term, shares of Williams Companies look even more appealing. WMB stock has rallied 21.7% on a YTD basis and gained 38.4% over the past 52 weeks, outperforming XLE’s returns of 7.7% in 2024 and 15.2% gains over the past year.
To confirm the bullish trend, WMB has been consistently trading above the 200-day moving average since July and the 50-day moving average since late-February.
Williams Companies stood firm amid a turbulent natural gas market, where prices dipped significantly annually. Despite this challenge, investor interest surged when WMB revealed its robust Q1 earnings results. With adjusted net income climbing 5.1% annually to $719 million and adjusted EPS soaring 5.4% to $0.59, surpassing expectations by a notable 20.4%, optimism soared.
Moreover, the company’s strategic acquisition of $2 billion in natural gas storage assets early in the year underscored its commitment to future growth. Adding to its allure, the company extended its streak of dividend increases for the eighth consecutive year. This blend of financial resilience, strategic expansion, and shareholder commitment propelled WMB to outperform the energy sector throughout the year.
Williams Companies’ rival, Energy Transfer LP (ET), is significantly underperforming WMB. ET stock gained 13.8% in 2024 and 23.1% over the past 52 weeks, lagging behind WMB’s double-digit gains.
Analysts are moderately bullish on WMB’s prospects. Among the 21 analysts covering the stock, there is a consensus rating of “Moderate Buy.” Furthermore, the stock currently trades above its mean target of $41.31.
On the date of publication, Sristi Jayaswal 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.
