Bull’s Eye Report: Williams Companies (WMB)

Buy WMB at current levels or on a pullback to $34

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Green Dot Corp WMB Oil & Gas Storage & Transportation 7.2 +2.00% $33.47

Why We Like The Stock:

Williams Companies Inc. (NYSE:WMB) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Unlike a lot of other energy stocks like HollyFrontier (NYSE:HFC), Western Refining (NYSE:WNR) and Valero (NYSE:VLO), WMB is not over-extended on a weekly basis, which limits the short-term “blowup” potential that its counterparts have. The stock has been making higher highs and higher lows over the past year, which tells us that pullbacks are an opportunity for entry. Currently, the stock has pulled back off of its recent $36 highs. With solid support around the $33.50 level, WMB could be a good short-term play up to $36. Having just crossed above its short-term moving averages earlier this week, now would be a good time to buy WMB for an easy +4% trade.

We Would Be Buyers:

At the current price (~$34.66), or on a pullback to ~$34.

Company Profile:

The Williams Companies, Inc. is an energy infrastructure company focused on connecting North America’s hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGLs), and olefins. Its operations span from the deepwater Gulf of Mexico to the Canadian oil sands. It operates in three segments: Williams Partners, Midstream Canada & Olefins and Other. On February 17, 2012, Williams Partners acquired 100% of the ownership interests in certain entities from Delphi Midstream Partners, LLC. On April 30, 2012, it acquired Caiman Eastern Midstream, LLC. In November 2012, Williams Partners LP acquired Williams Companies’ approximately 83% interest in the Geismar olefins production facility, as well as Williams’ refinery-grade propylene splitter and pipelines in the Gulf region. In December 2012, the company acquired Access Midstream Partners GP, L.L.C. and Access Midstream Partners LP.

Stock Rating: 7.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Williams Companies – Last Three Months

WMB 1 300x168 Bulls Eye Report: Williams Companies (WMB)
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Williams Companies – Last 12 Months

WMB 2 300x168 Bulls Eye Report: Williams Companies (WMB)
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Williams Companies – Last Five Years

WMB 3 300x168 Bulls Eye Report: Williams Companies (WMB)
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At the time of publication the editor and affiliated companies own the following positions: WMB

Note: Positions may be bought or sold while this publication is in circulation without notice.


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