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 $240.8 million.
  • WMB is down 5.3% today from today's close.

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More details on WMB:

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates through Williams Partners, Williams NGL (natural gas liquids) & Petchem Services, and Other segments. The stock currently has a dividend yield of 11.6%. WMB has a PE ratio of 38. Currently there are 3 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Williams Companies has been 11.8 million shares per day over the past 30 days. Williams Companies has a market cap of $16.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.42 and a short float of 3.2% with 1.52 days to cover. Shares are down 17.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Williams Companies as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 192.8% when compared to the same quarter one year ago, falling from $70.00 million to -$65.00 million.
  • The debt-to-equity ratio is very high at 4.36 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.32, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WILLIAMS COS INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.42%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, WILLIAMS COS INC swung to a loss, reporting -$0.76 versus $2.82 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus -$0.76).

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