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Here's Why You Should Buy Westlake (WLK) Stock Right Now
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Shares of Westlake Corporation (WLK - Free Report) have shot up around 33% over the past three months. Westlake, a Zacks Rank #1 (Strong Buy) stock, is poised to benefit from the global economic rebound, strong demand, higher sales prices for most of its key products, and strategic acquisitions.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s delve deeper into the factors that make this chemical maker an attractive choice for investors right now.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Westlake for 2022 has increased around 21.3%. The consensus estimate for first-quarter 2022 has also been revised 18.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Westlake is currently pegged at $16.90, reflecting an expected year-over-year growth of 8.5%. Moreover, earnings are expected to register a 135.3% growth in first-quarter 2022.
Impressive Earnings Surprise History
Westlake has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 12.7%, on average.
Growth Drivers in Place
Westlake is benefiting from strong demand for most of its products on continued global economic expansion. It is gaining from higher demand in its polyethylene business in specialty applications, especially consumer product packaging, and strength in global demand for polyvinyl chloride (“PVC”) resin. WLK is seeing strong demand for PVC resin on the back of continued strength in the residential construction market and strong repair and remodeling markets. Strong demand in North American residential construction and the repair and remodeling markets is also driving prices of PVC resin.
The company, in its fourth-quarter call, said that market conditions remain favorable in 2022. It is well-placed to continue to provide value to customers and investors leveraging its market leading position in Performance and Essential Materials including PVC, polyethylene, epoxy, chlorine and caustic soda. The outlook is also positive for Housing and Infrastructure Products with strong market indicators in 2022.
Westlake has also developed a larger platform for growth with the Housing and Building Products acquisitions in 2021 and the epoxy acquisition in early 2022, which is expected to drive value through its integrated chain. It sees these businesses to significantly contribute to earnings this year.
The company will also gain from its capacity expansion projects and actions to improve operating efficiency and reduce costs. It is also making disciplined investments, developing new products and leveraging its current products and footprint globally.
Other top-ranked stocks worth considering in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 72% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 61.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 55% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 83% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 80.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 36.5% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 42% in a year.
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Here's Why You Should Buy Westlake (WLK) Stock Right Now
Shares of Westlake Corporation (WLK - Free Report) have shot up around 33% over the past three months. Westlake, a Zacks Rank #1 (Strong Buy) stock, is poised to benefit from the global economic rebound, strong demand, higher sales prices for most of its key products, and strategic acquisitions.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s delve deeper into the factors that make this chemical maker an attractive choice for investors right now.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Westlake for 2022 has increased around 21.3%. The consensus estimate for first-quarter 2022 has also been revised 18.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Westlake is currently pegged at $16.90, reflecting an expected year-over-year growth of 8.5%. Moreover, earnings are expected to register a 135.3% growth in first-quarter 2022.
Impressive Earnings Surprise History
Westlake has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 12.7%, on average.
Growth Drivers in Place
Westlake is benefiting from strong demand for most of its products on continued global economic expansion. It is gaining from higher demand in its polyethylene business in specialty applications, especially consumer product packaging, and strength in global demand for polyvinyl chloride (“PVC”) resin. WLK is seeing strong demand for PVC resin on the back of continued strength in the residential construction market and strong repair and remodeling markets. Strong demand in North American residential construction and the repair and remodeling markets is also driving prices of PVC resin.
The company, in its fourth-quarter call, said that market conditions remain favorable in 2022. It is well-placed to continue to provide value to customers and investors leveraging its market leading position in Performance and Essential Materials including PVC, polyethylene, epoxy, chlorine and caustic soda. The outlook is also positive for Housing and Infrastructure Products with strong market indicators in 2022.
Westlake has also developed a larger platform for growth with the Housing and Building Products acquisitions in 2021 and the epoxy acquisition in early 2022, which is expected to drive value through its integrated chain. It sees these businesses to significantly contribute to earnings this year.
The company will also gain from its capacity expansion projects and actions to improve operating efficiency and reduce costs. It is also making disciplined investments, developing new products and leveraging its current products and footprint globally.
Westlake Corp. Price and Consensus
Westlake Corp. price-consensus-chart | Westlake Corp. Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 72% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 61.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 55% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 83% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 80.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 36.5% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 42% in a year.