Why Western Midstream (WES) Dipped More Than Broader Market Today

Core Viewpoint - Western Midstream is set to report its earnings on August 6, 2025, with expectations of a decline in EPS and moderate revenue growth compared to the previous year [2][3]. Financial Performance - The stock closed at $40.49, reflecting a -1.68% change from the previous day, underperforming the S&P 500's loss of 0.13% [1] - Over the past month, the stock has increased by 6.74%, outperforming the Oils-Energy sector's gain of 4.18% and the S&P 500's gain of 3.39% [1]. Earnings Estimates - The expected EPS for the upcoming quarter is $0.82, which is a decrease of 15.46% from the same quarter last year [2]. - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of $3.33, down 17.16% year-over-year, with revenue expected to reach $3.8 billion, indicating a growth of 5.33% [3]. Analyst Sentiment - Recent adjustments to analyst estimates indicate evolving short-term business trends, with positive revisions reflecting optimism about the company's profitability [3]. - The Zacks Consensus EPS estimate has decreased by 2.16% in the past month, and the company currently holds a Zacks Rank of 4 (Sell) [5]. Valuation Metrics - Western Midstream is trading at a Forward P/E ratio of 12.39, which is lower than the industry average Forward P/E of 20.97, suggesting a valuation discount [6]. Industry Context - The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is currently ranked 196 out of over 250 industries, placing it in the bottom 21% [6].