Stock of the Day

March 11, 2021

Westlake (WLK)

$75.11
-$0.60 (-0.8%)
Market Cap: $9.68B

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products. The Performance and Essential Materials segment offers ethylene, polyethylene, styrene, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries, as well as chlor-alkali, such as chlorine and caustic soda. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; PVC films for various inflatables, wallcovering, and tape and roofing applications; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; PVC compounds used in various housing, medical, and automobile products; and consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation operates as a subsidiary of TTWF LP.

Today's Trend

Westlake Corporation (NYSE: WLK) is facing mixed investor signals. The stock remains pressured by concerns about housing-related demand, operating execution and global market conditions, although a Zacks rating upgrade and selected earnings-estimate increases provide some support.

  • Zacks Research upgraded Westlake from “Strong Sell” to “Hold,” reducing the severity of its prior bearish stance. Zacks Research rating update
  • Zacks raised its Westlake EPS forecasts for the second quarter of 2027 to $0.99 from $0.66 and for the fourth quarter of 2027 to $0.56 from $0.14. It also increased its full-year 2027 forecast to $2.40 from $1.96, suggesting potential improvement in some periods. Westlake earnings forecast
  • A Zacks analysis recommends retaining WLK, citing growth in Westlake’s Housing, Infrastructure and Performance (“HIP”) businesses and the potential benefits of acquisitions. However, the article says housing weakness, operational risks and global pressures make the outlook uncertain. Why retain Westlake stock
  • Zacks continues to project earnings below broader consensus, forecasting fiscal 2026 EPS of $2.78 versus the $3.35 consensus estimate. Its fiscal 2028 EPS forecast was cut to $1.60 from $2.00.
  • Several estimates were reduced, including third-quarter 2027 EPS to $0.34 from $0.73 and first-quarter 2028 EPS to a loss of $0.37 from a loss of $0.02. The continued “Strong Sell” outlook in the detailed forecasts and expectations for weak or negative earnings in certain quarters likely weigh on sentiment. Westlake analyst estimates
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