In the latest trading session, Western Midstream (WES) closed at $44.82, marking a -1.1% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The oil and gas transportation and storage company's shares have seen a decrease of 4.02% over the last month, not keeping up with the Oils-Energy sector's gain of 4.62% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Western Midstream will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 2.3% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.2 billion, reflecting a 25.52% rise from the equivalent quarter last 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.
Investors should also note any recent changes to analyst estimates for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. Currently, Western Midstream is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Western Midstream is presently being traded at a Forward P/E ratio of 12.37. This signifies a premium in comparison to the average Forward P/E of 11.62 for its industry.
Also, we should mention that WES has a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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).