Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Westlake Chemical (WLK)
Houston, TX-based Westlake Corporation is a global producer and supplier of materials and innovative products. The company, in February 2022, changed its name to Westlake Corporation from Westlake Chemical Corporation to reflect its more diversified business portfolio. The company's range of products includes ethylene, polyethylene, styrene, vinyl intermediates, PVC, PVC Pipe, PVC windows, fence and decking components. The company utilizes most of its internally-produced basic chemicals to make higher value-added chemicals and building products.
WLK is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 44% year-over-year for the current fiscal year, with sales growth of 30.2%.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2022, while the Zacks Consensus Estimate has increased $2.45 to $22.44 per share. WLK also boasts an average earnings surprise of 13.8%.
Looking at cash flow, Westlake Chemical is expected to report cash flow growth of 167.4% this year; WLK has generated cash flow growth of 26.5% over the past three to five years.
Investors should take the time to consider WLK for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
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