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Williams Companies, Inc. (The) (WMB) Outpaces Stock Market Gains: What You Should Know

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Williams Companies, Inc. (The) (WMB - Free Report) closed the most recent trading day at $29.86, moving +1.53% from the previous trading session. This change outpaced the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Prior to today's trading, shares of the pipeline operator had lost 3.32% over the past month. This has lagged the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.

Williams Companies, Inc. (The) will be looking to display strength as it nears its next earnings release. In that report, analysts expect Williams Companies, Inc. (The) to post earnings of $0.48 per share. This would mark year-over-year growth of 17.07%. Meanwhile, our latest consensus estimate is calling for revenue of $3.14 billion, up 24.49% from the prior-year quarter.

WMB's full-year Zacks Consensus Estimates are calling for earnings of $1.82 per share and revenue of $12.28 billion. These results would represent year-over-year changes of 0% and +11.98%, respectively.

Any recent changes to analyst estimates for Williams Companies, Inc. (The) should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.2% higher. Williams Companies, Inc. (The) currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Williams Companies, Inc. (The) has a Forward P/E ratio of 16.15 right now. For comparison, its industry has an average Forward P/E of 14.27, which means Williams Companies, Inc. (The) is trading at a premium to the group.

Meanwhile, WMB's PEG ratio is currently 4.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.9 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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