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

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In the latest market close, Western Midstream (WES - Free Report) reached $37.49, with a +0.27% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.56%.

The oil and gas transportation and storage company's stock has dropped by 2.91% in the past month, exceeding the Oils-Energy sector's loss of 10.39% and lagging the S&P 500's gain of 1.83%.

Market participants will be closely following the financial results of Western Midstream in its upcoming release. The company plans to announce its earnings on November 6, 2024. The company's earnings per share (EPS) are projected to be $0.82, reflecting a 17.14% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $915.33 million, up 17.95% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $3.63 billion. These totals would mark changes of +59.23% and +16.95%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Midstream. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. 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 9.04. For comparison, its industry has an average Forward P/E of 17.9, which means Western Midstream is trading at a discount to the group.

We can also see that WES currently has a PEG ratio of 0.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.99 as trading concluded 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 56, finds itself in the top 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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