Back to top

Image: Bigstock

Western Midstream (WES) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Western Midstream (WES - Free Report) closed the most recent trading day at $41.36, moving -0.62% from the previous trading session. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.08%.

Prior to today's trading, shares of the oil and gas transportation and storage company had lost 2.96% over the past month. This has was narrower than the Oils-Energy sector's loss of 3.18% and lagged the S&P 500's gain of 2.37% in that time.

The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. In that report, analysts expect Western Midstream to post earnings of $0.84 per share. This would mark year-over-year growth of 13.51%. Meanwhile, the latest consensus estimate predicts the revenue to be $906.72 million, indicating a 5.65% increase compared to the same quarter of the previous year.

Investors might also notice recent changes to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.34% lower. As of now, Western Midstream holds a Zacks Rank of #4 (Sell).

Looking at valuation, Western Midstream is presently trading at a Forward P/E ratio of 12.01. This denotes a discount relative to the industry's average Forward P/E of 22.8.

One should further note that WES currently holds a PEG ratio of 1.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry currently had an average PEG ratio of 0.99 as of yesterday's close.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 223, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Western Midstream Partners, LP (WES) - free report >>

Published in