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Why Western Midstream (WES) Outpaced the Stock Market Today

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In the latest trading session, Western Midstream (WES - Free Report) closed at $39.09, marking a +1.32% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.

The oil and gas transportation and storage company's shares have seen an increase of 1.39% over the last month, not keeping up with the Oils-Energy sector's gain of 4.97% and the S&P 500's gain of 5.13%.

Market participants will be closely following the financial results of Western Midstream in its upcoming release. It is anticipated that the company will report an EPS of $0.83, marking a 14.43% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $920.79 million, up 1.67% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.4 per share and a revenue of $3.77 billion, demonstrating changes of -15.42% and +4.44%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Western Midstream. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).

In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 11.35. This expresses a discount compared to the average Forward P/E of 20.29 of its industry.

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 91, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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