Is Williams Companies Stock Outperforming the Dow?

The Williams Companies, Inc. (WMB), headquartered in Tulsa, Oklahoma, operates as an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs), and olefins. With a market cap of $90.7 billion, the company owns and operates midstream gathering and processing assets, and interstate natural gas pipelines.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and WMB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the oil & gas midstream industry. WMB’s strategic strength stems from its robust asset portfolio, featuring key pipeline systems like Transco and Northwest. Strategic acquisitions have expanded its capacity and reach, solidifying its position as a leading midstream player.

Despite its notable strength, WMB slipped 8.3% from its 52-week high of $80.08, achieved on May 20. Over the past three months, WMB stock gained 2.5%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3.6% gains during the same time frame.

Shares of WMB have climbed 23.4% on a YTD basis and rose 30.5% over the past 52 weeks, outperforming DOWI’s YTD 11.1% gains and 17.1% returns over the last year.

To confirm the bullish trend, WMB has been trading above its 200-day moving average over the past year, with slight fluctuations. The stock is trading above its 50-day moving average since mid-August, with some fluctuations. 

WMB has outperformed by positioning itself as a core beneficiary of surging U.S. natural gas demand, driven largely by new AI data center power needs and Gulf Coast LNG exports. Supported by fee-based revenues from its flagship Transco pipeline, strategic acquisitions, and ongoing capacity expansions, WMB has generated record EBITDA growth, strong dividend coverage, and a robust project backlog that offers investors both high-yielding income and reliable capital appreciation.

On Aug. 3, WMB shares closed down by 1.6% after reporting its Q2 results. Its adjusted EPS of $0.50 missed Wall Street expectations of $0.52. The company’s revenue was $3.05 billion, falling short of Wall Street forecasts of $3.08 billion.

WMB’s rival, Kinder Morgan, Inc. (KMI) shares lagged behind the stock, with a 13.3% uptick on a YTD basis and 17.7% gains over the past 52 weeks.

Wall Street analysts are bullish on WMB’s prospects. The stock has a consensus “Strong Buy” rating from the 22 analysts covering it, and the mean price target of $85.36 suggests a potential upside of 16.2% from current price levels.

On the date of publication, Neha Panjwani 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.