In the latest trading session, Western Midstream (WES) closed at $37.97, marking a -1.66% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.71%.
Shares of the oil and gas transportation and storage company have appreciated by 1.5% over the course of the past month, underperforming the Oils-Energy sector's gain of 2.31%, and the S&P 500's gain of 4.26%.
Market participants will be closely following the financial results of Western Midstream in its upcoming release. On that day, Western Midstream is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 17.57%. Alongside, our most recent consensus estimate is anticipating revenue of $954.2 million, indicating a 8.02% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.4 per share and revenue of $3.76 billion, indicating changes of -15.42% and +4.27%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Western Midstream should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.34% higher. Western Midstream currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 11.35. This expresses a discount compared to the average Forward P/E of 17.84 of its industry.
The Oil and Gas – Refining and Marketing – Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 170, placing it within the bottom 32% of over 250 industries.
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.
