Trade-Ideas LLC identified

Williams Companies

(

WMB

) as a "dead cat bounce" (down big yesterday but up big today) 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 $557.4 million.
  • WMB has traded 117,619 shares today.
  • WMB is up 7.4% today.
  • WMB was down 5.6% yesterday.

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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 in three segments: Williams Partners, Access Midstream, and Williams NGL & Petchem Services. The stock currently has a dividend yield of 14%. Currently there are 3 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 3 rate it a hold.

TST Recommends

The average volume for Williams Companies has been 14.7 million shares per day over the past 30 days. Williams Companies has a market cap of $13.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.23 and a short float of 1.8% with 0.59 days to cover. Shares are down 20.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Williams Companies as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 74.78% to $603.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -26.59%.
  • The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 53.92%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.22% trails the industry average.
  • Despite the weak revenue results, WMB has outperformed against the industry average of 36.5%. Since the same quarter one year prior, revenues fell by 13.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 is below that of both the industry average and 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 62.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 102.25% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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