Western Midstream (WES) ended the recent trading session at $39.35, demonstrating a +1.5% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
The stock of oil and gas transportation and storage company has risen by 3.83% in the past month, leading the Oils-Energy sector's gain of 3.17% and undershooting the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company is expected to report EPS of $0.83, down 14.43% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $920.79 million, showing a 1.67% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.4 per share and revenue of $3.77 billion. These totals would mark changes of -15.42% and +4.44%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Western Midstream is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Midstream has a Forward P/E ratio of 11.41 right now. This denotes a discount relative to the industry average Forward P/E of 20.34.
The Oil and Gas – Refining and Marketing – Master Limited Partnerships industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 220, this industry ranks in the bottom 11% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
