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Western Midstream (WES) Advances While Market Declines: Some Information for Investors

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In the latest market close, Western Midstream (WES - Free Report) reached $41.85, with a +0.02% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.33%.

The the stock of oil and gas transportation and storage company has risen by 1.16% in the past month, leading the Oils-Energy sector's loss of 1.22% and the S&P 500's loss of 7.48%.

The upcoming earnings release of Western Midstream will be of great interest to investors. In that report, analysts expect Western Midstream to post earnings of $0.83 per share. This would mark a year-over-year decline of 43.54%. Meanwhile, our latest consensus estimate is calling for revenue of $945.11 million, up 6.46% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.41 per share and a revenue of $3.79 billion, signifying shifts of -15.17% and +5.21%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 1.64% lower. Right now, Western Midstream possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Western Midstream currently has a Forward P/E ratio of 12.28. Its industry sports an average Forward P/E of 23.89, so one might conclude that Western Midstream is trading at a discount comparatively.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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