Western Midstream (WES) Outpaces Stock Market Gains: What You Should Know

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.

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 9, finds itself in the top 4% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research