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Western Midstream (WES) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Western Midstream (WES - Free Report) ended the recent trading session at $40.57, demonstrating a +0.47% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.98%.

The oil and gas transportation and storage company's stock has climbed by 1.71% in the past month, exceeding the Oils-Energy sector's loss of 0.76% and lagging the S&P 500's gain of 2.07%.

Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. The company's earnings report is set to go public on February 26, 2025. On that day, Western Midstream is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 13.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $906.72 million, up 5.65% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, the Zacks Consensus EPS estimate has shifted 1.24% downward. Western Midstream is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Western Midstream's current valuation metrics, including its Forward P/E ratio of 11.65. This expresses a discount compared to the average Forward P/E of 23.92 of its industry.

Investors should also note that WES has a PEG ratio of 1.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry had an average PEG ratio of 0.98 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 has a Zacks Industry Rank of 29, which puts it in the top 12% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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