We recently compiled a list of the 10 Best Gas Stocks to Buy According to Billionaires. In this article, we are going to take a look at where The Williams Companies, Inc. (NYSE:WMB) stands against the other gas stocks.
Energy stocks have performed strongly in 2025 so far and have outpaced the broader markets. Investors seem to be shifting from the tech play in favor of companies with high free cash flow that can pay dividends and overcome economic downturns.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Best Stocks Under $3 to Buy Now.
Rob Thummel, senior portfolio manager at Tortoise Capital, highlighted the energy sector’s compelling investment characteristics, such as high free cash flow yields, dividend growth, and stock buybacks.
Simon Lack, portfolio manager at Catalyst Energy Infrastructure Fund, believes that tariffs are unlikely to impact US energy exports significantly. Additionally, a favorable regulatory environment under the Trump administration is expected to help lower production costs for energy companies. Lack noted that President Trump has signaled willingness to reconsider tariffs if other countries purchase more US oil and gas. This reinforces a positive outlook for the sector.
Natural gas prices have surged by over 30% in 2025. This makes natural gas the standout performer in the energy sector. Natural gas companies are benefiting from the bullish price movements.
Methodology
To compile our list of the 10 best gas stocks to buy according to billionaires, we looked for the largest gas companies. We also reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gas stocks. Next, we focused on the top 10 gas stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gas stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
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 Billionaire Investors: 13
Number of Hedge Fund Holders: 73
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. With its 33,000-mile pipeline infrastructure, the company moves approximately one-third of the natural gas in the US. The Williams Companies, Inc. (NYSE:WMB) ranks among the best gas stocks to buy according to billionaires.
On February 13, Stifel analysts updated their outlook on The Williams Companies, Inc. (NYSE:WMB) and raised the price target from $61 to $62 while reiterating a “Buy” rating. This update came after the company’s Q4 2024 results, which met analyst forecasts and included increased EBITDA guidance for 2025. The Williams Companies, Inc. (NYSE:WMB) emphasized its strategic position to support multiple prospects and growing demand for natural gas, particularly from sectors like AI data centers, power generation, and LNG. While the company has not announced a specific AI data center project, it is preparing for a significant opportunity by ordering long lead time items. The Williams Companies, Inc. (NYSE:WMB) also expressed confidence in exceeding its long-term growth guidance that is currently set at 5-7%. The company’s robust balance sheet allows for potential growth through acquisitions. Stifel’s updated outlook and price target reflect optimism about the company’s ability to expand its market presence and financial performance.
Overall, WMB ranks 10th on our list of the best gas stocks to buy according to billionaires. While we acknowledge the potential of WMB as an investment, 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. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
