Williams Companies Inc (WMB): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Williams Companies ( WMB) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1.3%. By the end of trading, Williams Companies fell $1.38 (-3.7%) to $35.60 on heavy volume. Throughout the day, 28,072,587 shares of Williams Companies exchanged hands as compared to its average daily volume of 6,563,500 shares. The stock ranged in price between $35.02-$35.82 after having opened the day at $35.44 as compared to the previous trading day's close of $36.98. Other companies within the Basic Materials sector that declined today were: Axiall ( AXLL), down 16.3%, Resolute Energy ( REN), down 15.9%, China Natural Resources ( CHNR), down 10.1% and Compressco Partners ( GSJK), down 8.0%.
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The Williams Companies, Inc. operates as an energy infrastructure company. Williams Companies has a market cap of $25.5 billion and is part of the energy industry. The company has a P/E ratio of 32.4, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Williams Companies as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Syntroleum Corporation ( SYNM), down 32.5%, Gold Standard Ventures ( GSV), down 30.6%, Pioneer Southwest Energy Partners ( PSE), down 23.6% and Pretium Resources ( PVG), down 16.9% , were all gainers within the basic materials sector with EOG Resources ( EOG) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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