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In the latest trading session, Western Midstream (WES) closed at $42.35, marking a -0.19% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.5%.
The oil and gas transportation and storage company's stock has climbed by 8.74% in the past month, exceeding the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company's upcoming EPS is projected at $0.85, signifying a 14.86% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $906.72 million, showing a 5.65% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.9% lower within the past month. Western Midstream currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 12.2. For comparison, its industry has an average Forward P/E of 23.32, which means Western Midstream is trading at a discount to the group.
One should further note that WES currently holds a PEG ratio of 1.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry was having an average PEG ratio of 1.03.
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 59, which puts it in the top 24% of all 250+ industries.