In the latest trading session, Western Midstream (WES) closed at $38.44, marking a -2.49% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.48%.
The stock of oil and gas transportation and storage company has risen by 0.54% in the past month, lagging the Oils-Energy sector's gain of 4.06% and the S&P 500's gain of 2.87%.
Investors will be eagerly watching for the performance of Western Midstream in its upcoming earnings disclosure. In that report, analysts expect Western Midstream to post earnings of $0.87 per share. This would mark year-over-year growth of 17.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $954.2 million, up 8.02% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.4 per share and a revenue of $3.76 billion, representing changes of -15.42% and +4.27%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.34% higher. Western Midstream is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Western Midstream is at present trading with a Forward P/E ratio of 11.59. For comparison, its industry has an average Forward P/E of 19.17, which means Western Midstream is trading at a discount to the group.
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 193, putting it in the bottom 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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