Western Midstream (WES) Up 2.9% Since Last Earnings Report: Can It Continue?

Western Midstream (WES) shares have increased by 2.9% since its last earnings report, underperforming the S&P 500, with analyst estimates remaining flat over the past month. WES holds a Zacks Rank #3 (Hold), projecting an in-line return in the coming months. Targa Resources (TRGP), a peer in the same industry, saw a 2.6% gain over the past month, reporting revenues of $4.56 billion and EPS of $0.91 for the quarter ended March 2025; TRGP's expected EPS for the current quarter is $1.95, a 46.6% year-over-year increase.

Analysis

Western Midstream (WES) shares have appreciated by 2.9% since its last earnings report, a gain that nevertheless underperforms the S&P 500 index. Analyst earnings estimates for WES have remained flat over the past month, indicating a lack of new catalysts influencing revisions. The company holds a Zacks Rank #3 (Hold), suggesting an expectation of in-line market returns in the near future. This is further contextualized by its VGM Scores: an average 'C' for Growth, a lagging 'F' for Momentum, but a more favorable 'B' for Value, leading to an overall 'C' aggregate score. Comparatively, Targa Resources (TRGP), an industry peer, also experienced a 2.6% share price increase over the past month. TRGP's most recent quarterly results for the period ending March 2025 showed revenues of $4.56 billion, marking a 0% year-over-year change, and an EPS of $0.91, down from $1.22 in the corresponding prior-year period. However, Targa Resources is anticipated to report a significant 46.6% year-over-year increase in EPS to $1.95 for the current quarter, although its Zacks Consensus Estimate has declined by 2.4% in the last 30 days. TRGP also carries a Zacks Rank #3 (Hold) and possesses a VGM Score of B, reflecting a somewhat more balanced profile than WES.

Key Decisions for Investors

• Given Western Midstream's 'Hold' rating, flat estimate revisions, and particularly weak 'F' Momentum score, investors should monitor for positive fundamental shifts or new catalysts before considering new or increased positions, despite its 'B' grade for Value.
• Investors should note WES's 2.9% share price increase has underperformed the S&P 500, suggesting that broader market strength is not fully translating to the stock at this time.
• For Targa Resources, while the projected +46.6% year-over-year EPS growth for the current quarter is compelling, the recent -2.4% downward revision in its consensus estimate and its 'Hold' rating indicate that investors should await confirmation of this earnings acceleration.
• The 'Hold' ratings for both WES and TRGP suggest a period of consolidation; therefore, a neutral stance may be appropriate, with a focus on upcoming earnings announcements and any changes in industry conditions before making significant investment decisions.