Why Westlake Chemical (WLK) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out 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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 4.4X for the current fiscal year compared to the Chemical - Plastic industry's P/E of 6.1X. Additionally, WLK has a PEG Ratio of 0.1 and a Price/Cash Flow ratio of 4.4X. Value investors should also note WLK's Price/Sales ratio of 0.9X.
Many value investors pay close attention to a company's earnings as well. For WLK, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.42 to $22.44 per share for 2022. Per share WLK boasts an average earnings surprise of 13.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding WLK to their portfolios.
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