Western Midstream (WES) Registers a Bigger Fall Than the Market: Important Facts to Note
Western Midstream (WES) ended the recent trading session at $38.80, demonstrating a -1.62% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 1.01%.
The the stock of oil and gas transportation and storage company has fallen by 0.88% in the past month, leading the Oils-Energy sector's loss of 4.09% and undershooting the S&P 500's gain of 4.31%.
Market participants will be closely following the financial results of Western Midstream in its upcoming release. The company's upcoming EPS is projected at $0.84, signifying a 20% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $916.7 million, up 18.13% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $3.69 billion, which would represent changes of +59.62% and +18.88%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.2% fall in the Zacks Consensus EPS estimate. Western Midstream is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 9.51. This indicates a discount in contrast to its industry's Forward P/E of 19.37.
We can also see that WES currently has a PEG ratio of 0.75. 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 average PEG ratio for the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry stood at 1.04 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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