Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Chemical - Plastic industry's P/E of 8.1X, shares of Westlake Chemical are trading at a forward P/E of 6X. WLK also has a PEG Ratio of 0.2, a Price/Cash Flow ratio of 5.9X, and a Price/Sales ratio of 1.2X.
Many value investors pay close attention to a company's earnings as well. For WLK, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.04 to $21.79 per share for 2022. Per share WLK boasts an average earnings surprise of 13.8%.
Investors should take the time to consider WLK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Westlake Corp. (WLK) : Free Stock Analysis Report
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