Williams Up 49% in 2024: Should Investors Cash Out or Hold On?

Zacks12-19

The Williams Companies WMB, a leading energy infrastructure firm in North America, has been riding high in 2024. The stock has surged 49.3% year to date, outperforming the S&P 500 and its midstream ...

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The stock has surged 49.3% year to date, outperforming the S&P 500 and its midstream ...</p>\n\n<a href=\"https://finance.yahoo.com/news/williams-49-2024-investors-cash-142200612.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Williams Up 49% in 2024: Should Investors Cash Out or Hold On?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWilliams Up 49% in 2024: Should Investors Cash Out or Hold On?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-19 22:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/williams-49-2024-investors-cash-142200612.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Williams Companies WMB, a leading energy infrastructure firm in North America, has been riding high in 2024. The stock has surged 49.3% year to date, outperforming the S&P 500 and its midstream ...</p>\n\n<a href=\"https://finance.yahoo.com/news/williams-49-2024-investors-cash-142200612.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0122376428.USD","symbol_name":"贝莱德世界能源基金A2","start_time":0,"source_url":"https://finance.yahoo.com/news/williams-49-2024-investors-cash-142200612.html","article_id":"2492110694","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jwyPsx2bfUxmBcBI.h.lsQ--~B/aD0zODY7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/4fac6f31b05aabf2afc85992db25f00a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492110694","pubTimestamp":1734618120,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Williams Companies WMB, a leading energy infrastructure firm in North America, has been riding high in 2024. The stock has surged 49.3% year to date, outperforming the S&P 500 and its midstream competitors like TC Energy TRP and Kinder Morgan KMI. This strong performance leaves investors wondering: Is now the time to take profits or stay invested?Robust Performance in Key Segments: Williams Companies delivered solid third-quarter results, supported by strength in its core Transmission & Gulf of Mexico segment. This segment reported a significant contribution to earnings, fueled by increasing demand and strategic capacity expansions. The company continues to capitalize on long-term contracts, providing reliable cash flows and stability. With demand for natural gas steadily rising, Williams is well-positioned to sustain its growth trajectory into 2025 and beyond.Earnings Momentum: The company’s earnings track remains impressive, with Williams surpassing expectations in each of the la","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0122376428.USD":"贝莱德世界能源基金A2","LU0630314457.HKD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (HKD) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4144":"石油与天然气的储存和运输","IE00BMG7P587.USD":"LEGG MASON CLEARBRIDGE GLOBAL INFRASTRUCTURE INCOM \"A\" (USD) INC","BK4585":"ETF&股票定投概念","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU0345781412.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) INC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","BK4566":"资本集团","BK4211":"区域性银行","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","TRP":"TC Energy","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","LU0345780950.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) ACC","LU0788109394.HKD":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","BK4588":"碎股","WMB":"威廉姆斯","LU1621767737.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (EUR) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU2384288077.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A-INS\" (EUR) ACC","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","LU1621767810.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A\" (EUR) INC","LU1621768206.USD":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (USD) ACC","IE00BMG7P926.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Acc USD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU1621768115.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"B\" (EUR) INC","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","KMI":"金德尔摩根","LU0456854461.SGD":"JPMorgan Funds - Global Natural Resources A (acc) SGD","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","IE00BMG7P694.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis USD Plus","LU0300736062.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) ACC","ISBC":"投资者银行"},"translate_title":"威廉姆斯2024年上涨49%：投资者应该套现还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WMB":1,"TRP":1,"KMI":1,"ISBC":1},"content_text":"The Williams Companies WMB, a leading energy infrastructure firm in North America, has been riding high in 2024. The stock has surged 49.3% year to date, outperforming the S&P 500 and its midstream competitors like TC Energy TRP and Kinder Morgan KMI. This strong performance leaves investors wondering: Is now the time to take profits or stay invested?\nWMB, TRP and KMI Year-to-Date Stock Performance\n Image Source: Zacks Investment Research\nWhat Makes Williams Stand Out\nRobust Performance in Key Segments: Williams Companies delivered solid third-quarter results, supported by strength in its core Transmission & Gulf of Mexico segment. This segment reported a significant contribution to earnings, fueled by increasing demand and strategic capacity expansions. The company continues to capitalize on long-term contracts, providing reliable cash flows and stability. With demand for natural gas steadily rising, Williams is well-positioned to sustain its growth trajectory into 2025 and beyond.Earnings Momentum: The company’s earnings track remains impressive, with Williams surpassing expectations in each of the last four quarters. In the third quarter, it reported earnings of 43 cents per share, exceeding the consensus estimate by 2.4%. This success adds to its trailing four-quarter average earnings surprise of 8.8%, underscoring its operational strength.\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.\n Image Source: Zacks Investment Research\nExpanding Asset Base: Williams operates an extensive network, including 32.3 billion cubic feet per day (Bcf/d) of transmission capacity and 28.5 Bcf/d of gathering capacity. This infrastructure is supported by strategic projects with 11.5 Bcf/d of planned capacity expansions through 2032. The company’s focus on high-return opportunities ensures mid-to-high single-digit growth, securing a steady pipeline of shareholder returns for years to come.Strategic Projects: Williams remains focused on expanding its asset base, particularly through its Transco pipeline system, a critical infrastructure supporting the U.S. LNG export boom. The company is executing multi-year expansion projects aimed at enhancing capacity and efficiency. These initiatives are expected to drive 5-7% long-term adjusted EBITDA growth annually, signaling consistent value creation for shareholders through 2027.Dividend Growth: With a quarterly dividend to 47.50 cents per share, Williams continues to appeal to income-focused investors. Its attractive dividend yield and a history of outperforming its midstream peers make it a reliable option for consistent returns. Over the last five years, Williams has delivered a compound annual dividend growth rate exceeding 4%, reinforcing its status as a top choice for long-term investors.Despite Williams Companies' robust long-term potential, the hurdles posed by current market conditions and pressing company-specific challenges are impossible to overlook.\nChallenges Looming for WMB\nElevated Capital Expenditure: With the growth capex forecast between $1.45 billion and $1.75 billion in 2024, Williams has substantial capital needs. While these investments support growth, high capital expenditure could strain free cash flow if projected growth targets are not met, potentially impacting cash availability for dividends and other shareholder returns.High Debt Levels: With a debt-to-capitalization ratio of 64.6% at the end of the third quarter of 2024, Williams carries a heavier debt load than many peers. This high leverage increases financial risk, leaving the company vulnerable to market downturns or unexpected challenges that could strain its balance sheet.Rich Valuation: Williams' stock currently trades at a 33% premium to its three-year average EV/EBITDA multiple of 12.84, with a valuation of 17.09. This elevated valuation suggests limited near-term upside compared to its peers, whose average is 14.54. The lofty pricing raises concerns about whether future growth is already priced in the stock.\n Image Source: Zacks Investment Research\nVulnerability to Natural Gas Prices: Williams Companies' heavy reliance on natural gas prices and energy market conditions poses a significant risk to its future performance. Although the company's assets mostly provide stability, a sustained downturn in natural gas prices or broader energy market weakness could negatively impact volumes flowing through its system.Execution Risks: The company’s growth strategy relies on several large-scale infrastructure projects, which are subject to regulatory and permitting approvals. Prolonged delays or unfavorable rulings could hinder progress, impacting the projected revenue growth timeline. As seen with other midstream operators, these external risks remain significant and could create uncertainty around the company’s ability to deliver on its long-term targets.\nFinal Take: Hold for Now\nThe Williams Companies remains an attractive long-term investment, backed by its robust infrastructure, strategic portfolio shifts and consistent dividend growth. However, its elevated valuation suggests that much of its growth potential is already reflected in its stock price. Additionally, risks tied to debt levels, natural gas prices and project execution warrant caution.For investors, holding WMB shares could still offer rewards, given its strong dividend yield and earnings momentum. However, waiting for a more attractive valuation before adding or increasing exposure might be the wiser strategy.WMB carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nWilliams Companies, Inc. (The) (WMB) : Free Stock Analysis Report\nTC Energy Corporation (TRP) : Free Stock Analysis Report\nKinder Morgan, Inc. (KMI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492110694"}