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

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Williams Companies, Inc. (The) (WMB - Free Report) closed the latest trading day at $34.81, indicating a -0.17% change from the previous session's end. This change lagged the S&P 500's 0.76% gain on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 1.12%.

Coming into today, shares of the pipeline operator had gained 0.11% in the past month. In that same time, the Oils-Energy sector lost 2.82%, while the S&P 500 gained 2.5%.

The investment community will be paying close attention to the earnings performance of Williams Companies, Inc. (The) in its upcoming release. The company is slated to reveal its earnings on February 14, 2024. The company is forecasted to report an EPS of $0.47, showcasing a 11.32% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, down 6.82% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Williams Companies, Inc. (The). These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.41% decrease. Williams Companies, Inc. (The) is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Williams Companies, Inc. (The) is holding a Forward P/E ratio of 18.2. For comparison, its industry has an average Forward P/E of 15.24, which means Williams Companies, Inc. (The) is trading at a premium to the group.

We can additionally observe that WMB currently boasts a PEG ratio of 5.2. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.32 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 37% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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