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Are You a Value 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.

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

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 #1 (Strong Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Chemical - Plastic industry's P/E of 6.9X, shares of Westlake Chemical are trading at a forward P/E of 6.4X. WLK also has a PEG Ratio of 0.2, a Price/Cash Flow ratio of 5.2X, and a Price/Sales ratio of 1.3X.

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 $3.35 to $18.32 per share for 2022. Per share WLK boasts an average earnings surprise of 12.7%.

WLK should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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