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Western Midstream (WES) Rises But Trails Market: What Investors Should Know

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In the latest market close, Western Midstream (WES - Free Report) reached $41.19, with a +0.88% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.

The oil and gas transportation and storage company's shares have seen an increase of 4.11% over the last month, surpassing the Oils-Energy sector's loss of 7.35% and the S&P 500's loss of 3.31%.

Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.86, indicating a 16.22% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $906.72 million, up 5.65% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has remained steady. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).

Digging into valuation, Western Midstream currently has a Forward P/E ratio of 11.64. This expresses a discount compared to the average Forward P/E of 22.13 of its industry.

One should further note that WES currently holds a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.98.

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 15, which puts it in the top 6% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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