Williams Partners Stock Forecast: the Dilemma of the Corporate Structure, but a Stable Core Business (WPZ)

Williams Partners Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.Long and Short Aggressive

I Know First published on Seeking Alpha a bullish article about Williams Partners L.P. (WPZ); Williams Partners L.P., formerly Access Midstream Partners, L.P., owns, operates, develops and acquires natural gas, natural gas liquids (NGLs), oil gathering systems and other midstream energy assets. The Company’s business segments include Access Midstream, Northeast G&P, Atlantic-Gulf, West and NGL & Petchem Services. The Access Midstream segment provides gathering, treating and compression services to producers. The Northeast G&P segment includes natural gas gathering and processing and NGL fractionation businesses. Atlantic-Gulf segment includes its interstate natural gas pipeline, Transcontinental Gas Pipeline Company, LLC (Transco) and natural gas gathering and processing and crude oil production handling and transportation.

Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Williams Partners are included.

Williams Partners Stock Forecast

Williams Partners is among the top 15 stock picks for both time horizons. The stock has a bullish signal for both time horizons, signifying that it is currently undervalued. Over the predicted time horizons, the stock price will stop decreasing and start growing, which is in agreement with the fundamental analysis. During 2Q15, WPZ launched the Rockaway Delivery Lateral and Northeast Connector projects. These projects will increase natural gas delivery capacity to Brooklyn and Queens in New York. According to a company’s press release, the Rockaway Delivery Lateral provides an additional supply-delivery connection between WPZ’s Transco transmission pipeline and the National Grid distribution system. The Northeast Connector project consists of equipment to increase compression at three existing Transco facilities in New Jersey and Pennsylvania.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Alcoa Inc. Using this trading strategy, an investor should buy a stock if the last 5 day signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.