Western Midstream (WES) ended the recent trading session at $39.20, demonstrating a +1.71% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
The stock of oil and gas transportation and storage company has risen by 0.76% in the past month, lagging the Oils-Energy sector's gain of 2.23% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 17.57% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $954.2 million, indicating a 8.02% growth compared to the corresponding quarter of the prior year.
WES's full-year Zacks Consensus Estimates are calling for earnings of $3.4 per share and revenue of $3.76 billion. These results would represent year-over-year changes of -15.42% and +4.27%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.64% higher within the past month. Western Midstream presently features a Zacks Rank of #3 (Hold).
Investors should also note Western Midstream's current valuation metrics, including its Forward P/E ratio of 11.33. This denotes a discount relative to the industry average Forward P/E of 18.8.
The Oil and Gas – Refining and Marketing – Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
