Heavy Early Morning Activity On Western Gas Partners (WES) - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Western Gas Partners

(

WES

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Gas Partners as such a stock due to the following factors:

  • WES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
  • WES traded 63,601 shares today in the pre-market hours as of 7:31 AM, representing 22.1% of its average daily volume.

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More details on WES:

Western Gas Partners, LP owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; north-central Pennsylvania; and the Mid-Continent. The stock currently has a dividend yield of 4%. WES has a PE ratio of 29.7. Currently there are 9 analysts that rate Western Gas Partners a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Western Gas Partners has been 199,000 shares per day over the past 30 days. Western Gas has a market cap of $8.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.59 and a short float of 1.3% with 3.03 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Gas Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 19.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WESTERN GAS PARTNERS LP has improved earnings per share by 13.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WESTERN GAS PARTNERS LP increased its bottom line by earning $1.81 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($2.30 versus $1.81).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $78.51 million to $102.68 million.
  • 48.35% is the gross profit margin for WESTERN GAS PARTNERS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.45% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $139.57 million or 12.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.54%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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