Western Midstream (WES) closed at $40.85 in the latest trading session, marking a +1.09% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.
The stock of oil and gas transportation and storage company has fallen by 1.29% in the past month, lagging the Oils-Energy sector's gain of 0.04% and the S&P 500's gain of 5.98%.
The upcoming earnings release of Western Midstream will be of great interest to investors. It is anticipated that the company will report an EPS of $0.73, marking a 7.59% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $997.78 million, indicating a 8.79% growth compared to the corresponding quarter of the prior year.
WES's full-year Zacks Consensus Estimates are calling for earnings of $3.2 per share and revenue of $4.07 billion. These results would represent year-over-year changes of +7.38% and +5.78%, respectively.
Investors might also notice recent changes to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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 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. The Zacks Consensus EPS estimate has moved 4.38% lower within the past month. Western Midstream presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Midstream has a Forward P/E ratio of 12.62 right now. This valuation marks a discount compared to its industry average Forward P/E of 14.24.
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 21, which puts it in the top 9% 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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Western Midstream Partners, LP (WES): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).