In the latest trading session, Western Midstream (WES) closed at $42.11, marking a -3.22% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
The oil and gas transportation and storage company's stock has dropped by 4.16% in the past month, exceeding the Oils-Energy sector's loss of 7.58% and lagging the S&P 500's loss of 1.34%.
The investment community will be paying close attention to the earnings performance of Western Midstream in its upcoming release. It is anticipated that the company will report an EPS of $0.85, marking a 2.3% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 17.75% escalation compared to the year-ago quarter.
WES's full-year Zacks Consensus Estimates are calling for earnings of $3.44 per share and revenue of $4.45 billion. These results would represent year-over-year changes of +15.44% and +15.76%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.26% upward. Currently, Western Midstream is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Western Midstream is at present trading with a Forward P/E ratio of 12.64. Its industry sports an average Forward P/E of 12.64, so one might conclude that Western Midstream is trading at no noticeable deviation comparatively.
We can also see that WES currently has a PEG ratio of 1.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry was having an average PEG ratio of 1.61.
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 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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).