Western Midstream (WES) closed the most recent trading day at $38.38, moving +1.8% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%.
Shares of the oil and gas transportation and storage company witnessed a loss of 1.72% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 3.8%, and the S&P 500's gain of 5.12%.
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The upcoming earnings release of Western Midstream will be of great interest to investors. The company's upcoming EPS is projected at $0.83, signifying a 14.43% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $920.79 million, indicating a 1.67% upward movement from the same quarter last year.
WES's full-year Zacks Consensus Estimates are calling for earnings of $3.4 per share and revenue of $3.77 billion. These results would represent year-over-year changes of -15.42% and +4.44%, respectively.
It is also important to note the recent changes to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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).
Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 11.09. Its industry sports an average Forward P/E of 19.94, so one might conclude that Western Midstream is trading at a discount comparatively.
The Oil and Gas – Refining and Marketing – Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 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.
