In the latest trading session, Williams Companies, Inc. (The) (WMB) closed at $29.81, marking a +1.26% move from the previous day. This move lagged the S&P 500's daily gain of 1.96%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq lost 3.03%.
Heading into today, shares of the pipeline operator had gained 0.58% over the past month, lagging the Oils-Energy sector's gain of 6.43% and the S&P 500's gain of 2.19% in that time.
Wall Street will be looking for positivity from Williams Companies, Inc. (The) as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $0.45, up 9.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.02 billion, up 19.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $11.87 billion. These totals would mark changes of -5.49% and +8.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Williams Companies, Inc. (The). These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.02% lower within the past month. Williams Companies, Inc. (The) is currently sporting 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 17.13 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.73.
Also, we should mention that WMB has a PEG ratio of 4.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 4.1 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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