Western Midstream (WES) closed the most recent trading day at $46.58, moving -1.5% from the previous trading session. This change lagged the S&P 500's 1.49% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
The stock of oil and gas transportation and storage company has fallen by 2.21% in the past month, lagging the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.89, showcasing a 2.3% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.2 billion, indicating a 25.52% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.66 per share and a revenue of $4.67 billion, signifying shifts of +22.82% and +21.47%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Midstream. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. At present, Western Midstream boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 12.93. This expresses a premium compared to the average Forward P/E of 11.63 of its industry.
Also, we should mention that WES has a PEG ratio of 1.39. 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 had an average PEG ratio of 1.39 as trading concluded yesterday.
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 10, positioning it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Western Midstream Partners, LP (WES): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).