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Here's Why Western Midstream (WES) Gained But Lagged the Market Today

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In the latest market close, Western Midstream (WES - Free Report) reached $41.77, with a +0.05% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.

The oil and gas transportation and storage company's shares have seen an increase of 10.65% over the last month, surpassing the Oils-Energy sector's loss of 8% and the S&P 500's gain of 3.82%.

The investment community will be paying close attention to the earnings performance of Western Midstream in its upcoming release. The company is predicted to post an EPS of $0.89, indicating a 39.06% growth compared to the equivalent quarter last year. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.11 per share and a revenue of $3.65 billion, representing changes of +58.08% and +17.52%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% higher. Right now, Western Midstream possesses a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Western Midstream is holding a Forward P/E ratio of 10.16. This represents a discount compared to its industry's average Forward P/E of 11.63.

Investors should also note that WES has a PEG ratio of 0.75 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. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.77.

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 18, which puts it in the top 8% of all 250+ industries.

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.

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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