In the latest market close, Western Midstream (WES) reached $38.13, with a +1.98% movement compared to the previous day. This change outpaced the S&P 500's 0.13% gain on the day. Elsewhere, the Dow lost 1.33%, while the tech-heavy Nasdaq lost 0.13%.
The the stock of oil and gas transportation and storage company has fallen by 10.64% in the past month, lagging the Oils-Energy sector's loss of 9.42% and the S&P 500's loss of 6.3%.
Market participants will be closely following the financial results of Western Midstream in its upcoming release. The company's earnings per share (EPS) are projected to be $0.83, reflecting a 43.54% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $945.11 million, indicating a 6.46% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.42 per share and revenue of $3.79 billion, indicating changes of -14.93% and +5.21%, respectively, compared to the previous year.
It is also important to note the 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 company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).
Investors should also note Western Midstream's current valuation metrics, including its Forward P/E ratio of 10.94. This signifies a discount in comparison to the average Forward P/E of 19.1 for its industry.
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 52, which puts it in the top 21% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Western Midstream Partners, LP (WES): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
