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Western Midstream (WES) Ascends While Market Falls: Some Facts to Note

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Western Midstream (WES - Free Report) closed at $38.45 in the latest trading session, marking a +0.13% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.18%.

Shares of the oil and gas transportation and storage company have appreciated by 2.76% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.96% and lagging the S&P 500's gain of 3.15%.

The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. On that day, Western Midstream is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 39.06%. Simultaneously, our latest consensus estimate expects the revenue to be $883.63 million, showing a 19.69% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.10 per share and revenue of $3.65 billion, which would represent changes of +57.69% and +17.52%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Western Midstream. Such recent modifications usually signify the changing landscape of near-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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.33% upward. Western Midstream is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Western Midstream is currently being traded at a Forward P/E ratio of 9.37. This represents a discount compared to its industry's average Forward P/E of 16.09.

Investors should also note that WES has a PEG ratio of 0.69 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry stood at 0.72 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. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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