Western Midstream (WES) ended the recent trading session at $46.61, demonstrating a +1.39% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the oil and gas transportation and storage company witnessed a gain of 7.01% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.6%, and the S&P 500's gain of 0.55%.
The upcoming earnings release of Western Midstream will be of great interest to investors. The company's upcoming EPS is projected at $0.86, signifying a 1.15% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.11 billion, indicating a 17.75% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $4.45 billion, demonstrating changes of +15.77% and +15.76%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. At present, Western Midstream boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 13.33. This signifies no noticeable deviation in comparison to the average Forward P/E of 13.33 for its industry.
It is also worth noting that WES currently has a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.69 at yesterday's closing price.
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 25, which puts it in the top 11% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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).