Western Midstream (WES) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest close session, Western Midstream (WES) was down 1.16% at $40.94. The stock's performance was behind the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 0.83%.

Prior to today's trading, shares of the oil and gas transportation and storage company had gained 2.04% lagged the Oils-Energy sector's gain of 4.75% and outpaced the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of Western Midstream in its upcoming release. The company is predicted to post an EPS of $0.73, indicating a 7.59% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $997.78 million, up 8.79% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.25 per share and revenue of $4.07 billion. These totals would mark changes of +9.06% and +5.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Western Midstream. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.51% lower within the past month. Western Midstream is currently a Zacks Rank #3 (Hold).

Investors should also note Western Midstream's current valuation metrics, including its Forward P/E ratio of 12.75. This indicates a discount in contrast to its industry's Forward P/E of 14.87.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 10% of all industries, numbering over 250.

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

You can find more information on all of these metrics, and much more, on Zacks.com.

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Western Midstream Partners, LP (WES): Free Stock Analysis Report

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

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