In the latest trading session, Western Midstream (WES) closed at $44.57, marking a +1.43% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.
The oil and gas transportation and storage company's shares have seen a decrease of 4.21% over the last month, not keeping up with the Oils-Energy sector's loss of 2.9% and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 2.3% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 15.79% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.44 per share and revenue of $4.45 billion, indicating changes of +15.44% and +15.76%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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. The Zacks Consensus EPS estimate has moved 3.79% higher within the past month. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).
With respect to valuation, Western Midstream is currently being traded at a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 12.77, which means Western Midstream is trading at no noticeable deviation to the group.
We can also see that WES currently has a PEG ratio of 1.85. 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. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.
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).