Lagging In Post-Market Activity: Williams Companies (WMB)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Williams Companies (WMB) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Williams Companies as such a stock due to the following factors:
- WMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.9 million.
- WMB is down 4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WMB with the Ticky from Trade-Ideas. See the FREE profile for WMB NOW at Trade-IdeasMore details on WMB: The Williams Companies, Inc. operates as an energy infrastructure company. The stock currently has a dividend yield of 3.9%. WMB has a PE ratio of 65.0. Currently there are 6 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for Williams Companies has been 6.2 million shares per day over the past 30 days. Williams Companies has a market cap of $28.6 billion and is part of the basic materials sector and energy industry. Shares are up 8.1% year-to-date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Williams Companies as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- 39.82% is the gross profit margin for WILLIAMS COS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.84% trails the industry average.
- WILLIAMS COS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, WILLIAMS COS INC reported lower earnings of $0.64 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $0.64).
- WMB, with its decline in revenue, slightly underperformed the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 11.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- Net operating cash flow has declined marginally to $515.00 million or 5.67% when compared to the same quarter last year. Despite a decrease in cash flow WILLIAMS COS INC is still fairing well by exceeding its industry average cash flow growth rate of -22.86%.
- You can view the full Williams Companies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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