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 $87.4 billion, the company owns and operates midstream gathering and processing assets, and interstate natural gas pipelines.
Shares of this natural gas giant have underperformed the broader market over the past year. WMB has gained 18.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.2%. However, in 2026, WMB stock is up 19%, surpassing the SPX’s 13% rise on a YTD basis.
Narrowing the focus, WMB’s underperformance is also apparent compared to the First Trust Nasdaq Oil & Gas ETF (FTXN). The exchange-traded fund has gained about 34.1% over the past year. Moreover, the ETF’s 31.6% gains on a YTD basis outshine WMB’s returns over the same time frame.
WMB underperformed amid repeated earnings misses, volatile natural gas prices that hurt producer activity and throughput, and heavy capital spending on pipeline expansions and acquisitions. High interest rates added debt-servicing pressure, while permitting delays and energy transition uncertainty further weighed on sentiment.
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.
For the current fiscal year, ending in December, analysts expect WMB’s EPS to grow 11.9% to $2.35 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while surpassing the forecast on another occasion.
Among the 22 analysts covering WMB stock, the consensus is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is less bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Jul. 17, Ameet Thakkar from BMO Capital maintained a “Buy” rating on WMB, with a price target of $85, implying a potential upside of 18.9% from current levels.
The mean price target of $84.48 represents an 18.1% premium to WMB’s current price levels. The Street-high price target of $99 suggests a notable upside potential of 38.4%.
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.
