Western Midstream (WES) closed the latest trading day at $39.24, indicating a -0.05% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.26%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.77%.
The the stock of oil and gas transportation and storage company has fallen by 2.7% in the past month, leading the Oils-Energy sector's loss of 5.1% and the S&P 500's loss of 2.82%.
Market participants will be closely following the financial results of Western Midstream in its upcoming release. It is anticipated that the company will report an EPS of $0.86, marking a 16.22% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $906.72 million, showing a 5.65% escalation compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.68% lower within the past month. Currently, Western Midstream is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 11.19. Its industry sports an average Forward P/E of 20.7, so one might conclude that Western Midstream is trading at a discount comparatively.
Investors should also note that WES has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 0.9 at yesterday's closing price.
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 216, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
