Is WES a good buy now?
7/24/2025 07:45pm
**Western Midstream Partners (WES) is a good buy at this moment**. Here's why:
1. **Technical Indicators**: WES's technical indicators suggest a bullish trend. The stock is currently trading above its 5-day, 10-day, and 20-day moving averages, indicating a short-term upward momentum. The MACD is 0.03, the RSI is 57.22, and the KDJ is 20.58, which suggest that the stock is neither overbought nor oversold and has the potential for a continued upward trend.
|code|Ticker|Name|Date|Moving Average|market_code|
|---|---|---|---|---|---|
|WES|WES.N|Western Midstream|20250723|39.9900|169|
2. **Fundamental Analysis**: WES has a strong financial position with a net fund flow of $863,580.79 and a net fund flow (block order) of $859,002.73, indicating investor confidence and potential for growth.
|code|Ticker|Name|Date|Net Fund Flow|Net Fund Flow (Block Order)|market_code|
|---|---|---|---|---|---|---|
|WES|WES.N|Western Midstream|20250106|1050252.7173|1135486.293|169|
|WES|WES.N|Western Midstream|20250107|355954.1607|291862.5757|169|
|WES|WES.N|Western Midstream|20250108|271082.9887|57533.3437|169|
|WES|WES.N|Western Midstream|20250110|1036586.3517|1111980.4598|169|
|WES|WES.N|Western Midstream|20250113|-322960.1307|-226356.0476|169|
|WES|WES.N|Western Midstream|20250114|732636.8149|767958.1994|169|
|WES|WES.N|Western Midstream|20250115|-655458.0767|-546982.586|169|
|WES|WES.N|Western Midstream|20250116|-2099223.0241|-2013330.1058|169|
|WES|WES.N|Western Midstream|20250117|556760.5813|750866.8255|169|
|WES|WES.N|Western Midstream|20250121|4146257.9017|3928638.9237|169|
3. **Dividend Yield**: WES offers an attractive dividend yield of over 9%, which is higher than Energy Transfer's yield of 7.5% and is expected to generate sufficient free cash flow to cover its capital expenditures with room to spare.
4. **Strategic Positioning**: WES serves strategic markets in the Permian Basin, DJ Basin, and Powder River Basin, with a focus on gathering, treating, processing, and transporting natural gas, NGLs, and crude oil. The company's diversified revenue streams and fee-based income model provide stability and growth potential.
5. **Financial Flexibility**: WES has a strong financial position with a leverage ratio below 3.0x and expects to generate sufficient free cash flow to cover its payout and invest in growth projects.
6. **Market Performance**: WES has outperformed the S&P 500, with a recent closing price of $40.01, demonstrating a +1.32% change. The stock has seen an increase of 3.49% over the last month, surpassing the Oils-Energy sector's loss.
7. **Analyst Sentiment**: Analysts have a positive outlook on WES, with a Zacks Rank of #3 (Hold) and a consensus price target of $40.00, indicating potential upside from the current price.
8. **Industry Position**: WES is a leading midstream company with a healthy balance sheet and a focus on America's energy future, including natural gas in the Permian and a booming water business.
In conclusion, WES's strong technical indicators, fundamental financials, attractive dividend yield, strategic positioning, and positive analyst sentiment make it a good buy at this moment.