We recently published a list of 11 Best American Energy Stocks to Buy Now. In this article, we are going to take a look at where The Williams Companies, Inc. (NYSE:WMB) stands against other best American energy stocks to buy now.
On Friday, April 4, oil futures reached multiyear lows following China’s response to the tariffs imposed by the Trump administration. This sparks fear of a fall in demand for oil amid a full-blown trade war. The US benchmark for oil prices, West Texas Intermediate (WTI), fell over 7% to close at $61.99 per barrel and Brent crude futures dropped more than 6% to settle at $65.58. Crude has not traded at these levels since 2021.
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Crude losses worsened as China announced it would impose additional tariffs of 34% on US goods. This announcement came as a response to President Trump’s levies, which include increased duties on China-made imports.
President Trump’s tariffs saw financial markets react strongly and crude oil prices sinking as traders assessed the potential impact of a trade war on demand. Energy-related stocks were set to extend losses after dragging the market down with sell-offs in the Dow, S&P 500, and Nasdaq.
Crude losses also accelerated because of a decision by the Organization of Petroleum Exporting Countries and its allies, OPEC+, to increase supply approximately three times more than expected starting in May.
Angie Gildea, KPMG US energy leader, said that markets are still “digesting tariffs” and that the combination of higher oil supply and concerns about a weaker global economy is putting downward pressure on oil prices. She pointed out that this could lead to a new chapter in a volatile market.
Although energy was not included in the latest tariffs announced by the Trump administration on Wednesday, April 2, the escalation of a global trade war could hurt oil demand.
Our Methodology
To compile our list of the 11 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest energy companies. We sorted our results based on market capitalization and picked the top 25 American stocks. Next, we focused on the 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A bird’s-eye view of an oil & gas midstream platform in the Gulf of Mexico on a clear day.
The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 73
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that is primarily focused on natural gas processing, transportation, and related services. With its 33,000-mile pipeline infrastructure, it handles about one-third of the natural gas in the United States. The Williams Companies, Inc. (NYSE:WMB) ranks among the best American energy stocks to buy.
On April 1, JPMorgan analyst Jeremy Tonet reiterated an “Overweight” rating on The Williams Companies, Inc. (NYSE:WMB) with a price target of $66. Tonet estimates an adjusted EBITDA of $1.97 billion for Q1 2025. This exceeds both the Street’s median estimate of $1.91 billion and JPMorgan’s previous forecast of $1.899 billion. Tonet suggests that Transco rates and the Southside Reliability Enhancement project, which adds 423 million cubic feet per day (mmcf/d) of capacity, will contribute to a $892 million adjusted EBITDA in The Williams Companies, Inc.’s (NYSE:WMB) Transcontinental Gas Pipe Line (TGoM) segment. This would be a $67 million increase from the previous quarter. Additionally, the company’s Western operations are expected to generate $384 million, up $39 million quarter-over-quarter, supported by the recent Rimrock acquisition.
For the full year of 2025, JPMorgan estimates a $7.721 billion adjusted EBITDA for The Williams Companies, Inc. (NYSE:WMB), which is slightly above the previous estimate of $7.687 billion and the Street’s median of $7.659 billion. Tonet expects the company’s earnings call to focus on early project competitions, potential benefits from a Transco rate case, and increased dry-gas gathering and processing (G&P) activity. JPMorgan also expects the company to discuss its Will-Power initiative, which includes the proposed Socrates North and South behind-the-meter (BTM) 200 megawatt (MW) power generation facilities in Ohio. The Williams Companies, Inc. (NYSE:WMB) is also looking at additional BTM solutions and potential deals for up to 1 gigawatt of capacity by 2027.
Overall, WMB ranks 6th on our list of best mid cap growth stocks. While we acknowledge the potential of WMB, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
