Macroeconomic Headwinds To Weigh On Williams Companies Stock


The shares of Williams Companies (NYSE: WMB) surpassed pre-Covid levels largely due to the sharp rise in benchmark gas prices, assisted by broader economic recovery and production curtailments by OPEC. However, the recent dip earlier this month was triggered by fears of another infectious wave by the Omicron variant. Williams Companies is an energy infrastructure company that provides gas pipeline services and gathering and processing services to upstream oil & gas companies. The company handles nearly 30% of the country’s natural gas volumes. Despite the likelihood of rising production volumes in the U.S. in the current uncertain demand environment, the stock has almost an even chance of rise or fall after the recent drop.

So is Williams Companies stock likely to decline further in the coming weeks and months or is a recovery looking more likely? Per the Trefis machine learning engine which analyzes historical stock price movements, WMB stock has a 49% chance of a rise over the next month (21 trading days). See our analysis Williams Companies Stock Chance of Rise for more details.


Five Days: WMB -0.4%, vs. S&P 500 2.9%; Underperformed market (48% event probability)

  • Williams Companies stock declined 0.5% over a five-day trading period ending 12/28/2021, compared to the broader market (S&P500) which gained 2.9% over the same period.
  • A change of -0.4% or lower over 5-day period in 1214 times out of 2515 (48%); Stock rose in the next five days in 620 of these 1214 instances (51%).

Ten Days: WMB -3.6%, vs. S&P 500 0.5%; Underperformed market (21% event probability)

  • Williams Companies stock declined 3.6% over the last ten trading days (two weeks), compared to the broader market (S&P500) which gained 0.5%.
  • A change of -3.6% or lower over 10-day period in 532 times out of 2515 (21%); Stock rose in the next 10 days in 282 of these 532 instances (53%).

Twenty-One Days: WMB -10%, vs. S&P 500 0.8%; Underperformed market (11% event probability)

  • Williams Companies stock declined 10% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which declined by 0.8%.
  • Returns of -10% or lower over 21-day period in 276 times out of 2515 (11%); Stock rose in the next 21 days in 134 of these 276 instances (49%).

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Dec 2021
MTD [1]
2021
YTD [1]
2017-21
Total [2]
 WMB Return -10% 28% -18%
 S&P 500 Return 1% 26% 112%
 Trefis MS Portfolio Return 2% 47% 297%

[1] Month-to-date and year-to-date as of 12/28/2021
[2] Cumulative total returns since 2017

Invest with Trefis Market-Beating Portfolios


See all Trefis Price Estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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