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Western Midstream (WES) Declines More Than Market: Some Information for Investors

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In the latest trading session, Western Midstream (WES - Free Report) closed at $39.63, marking a -1.05% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.31%.

The oil and gas transportation and storage company's stock has climbed by 6.49% in the past month, exceeding the Oils-Energy sector's loss of 2.45% and the S&P 500's gain of 1.57%.

The upcoming earnings release of Western Midstream will be of great interest to investors. The company is predicted to post an EPS of $0.85, indicating a 21.43% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $916.7 million, up 18.13% from the year-ago period.

WES's full-year Zacks Consensus Estimates are calling for earnings of $4.16 per share and revenue of $3.69 billion. These results would represent year-over-year changes of +60% and +18.88%, respectively.

Investors might also notice recent changes to analyst estimates for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 1.84% rise in the Zacks Consensus EPS estimate. Currently, Western Midstream is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 9.64. This indicates a discount in contrast to its industry's Forward P/E of 19.19.

Investors should also note that WES has a PEG ratio of 0.76 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.98 as trading concluded yesterday.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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