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Western Midstream (WES) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Western Midstream (WES - Free Report) closed the latest trading day at $40.60, indicating a -1.34% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.76%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq lost 1.2%.

Coming into today, shares of the oil and gas transportation and storage company had gained 4.87% in the past month. In that same time, the Oils-Energy sector gained 4.11%, while the S&P 500 gained 2.71%.

The investment community will be paying close attention to the earnings performance of Western Midstream in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. The company's upcoming EPS is projected at $0.85, signifying a 14.86% increase compared to the same quarter of the previous 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 might also notice recent changes to analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1% fall in the Zacks Consensus EPS estimate. Western Midstream presently features a Zacks Rank of #4 (Sell).

Digging into valuation, Western Midstream currently has a Forward P/E ratio of 11.85. This expresses a discount compared to the average Forward P/E of 22.99 of its industry.

We can additionally observe that WES currently boasts a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.99.

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 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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