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 new lifetime high 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 $8.0 million.
- WES has traded 1,018 shares today.
- WES is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WES with the Ticky from Trade-Ideas. See the FREE profile for WES NOW at Trade-Ideas 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 3.5%. WES has a PE ratio of 35.0. Currently there are 8 analysts that rate Western Gas Partners a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Western Gas Partners has been 152,400 shares per day over the past 30 days. Western Gas has a market cap of $8.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.54 and a short float of 1.3% with 8.22 days to cover. Shares are up 17.6% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 23.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- WESTERN GAS PARTNERS LP reported significant earnings per share improvement 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 ($2.38 versus $1.81).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 72.4% when compared to the same quarter one year prior, rising from $50.71 million to $87.44 million.
- The gross profit margin for WESTERN GAS PARTNERS LP is rather high; currently it is at 50.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.28% significantly outperformed against the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Western Gas Partners Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.