In the latest close session, Western Midstream (WES) was up +1.74% at $49.03. The stock outpaced the S&P 500’s daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.
The oil and gas transportation and storage company’s shares have seen a decrease of 0.21% over the last month, not keeping up with the Oils-Energy sector’s gain of 5.4% and outstripping the S&P 500’s loss of 1.96%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company is forecasted to report an EPS of $0.89, showcasing a 2.3% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 25.52% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $4.67 billion. These totals would mark changes of +22.82% and +21.47%, respectively, from last year.
Any recent changes to analyst estimates for Western Midstream should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 3.82% higher. As of now, Western Midstream holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Western Midstream is at present trading with a Forward P/E ratio of 13.18. Its industry sports an average Forward P/E of 12.8, so one might conclude that Western Midstream is trading at a premium comparatively.
It’s also important to note that WES currently trades at a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Oil and Gas – Refining and Marketing – Master Limited Partnerships industry held an average PEG ratio of 1.42.
