We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Westlake Chemical (WLK) Stock Up 18% in 3 Months: Here's Why
Read MoreHide Full Article
Westlake Chemical Corporation’s (WLK - Free Report) shares have popped 17.8% over the past three months. The rally has resulted in the stock outperforming its industry’s rise of 13.9% over the same time frame. The company has also topped the S&P 500’s 6.9% rise over the same period.
Let’s take a look into the factors behind this Zacks Rank #1 (Strong Buy) stock’s price appreciation.
What’s Working in WLK’s Favor?
Forecast-topping first-quarter results and upbeat outlook have contributed to the gain in the company’s shares. Westlake Chemical’s earnings of $1.87 per share for the first quarter topped the Zacks Consensus Estimate of $1.56. Sales rose around 22% year over year to $2,357 million and also surpassed the Zacks Consensus Estimate of $1,998.2 million.
The company benefited from increased sales prices and margins for most of its key products including polyethylene and polyvinyl chloride (PVC) resin, and strong demand in downstream building products business in the first quarter.
Westlake Chemical sees continued strong global demand in polyethylene, PVC and downstream building products on strong markets for the downstream uses of its products including residential construction, packaging and healthcare. The company remains focused on operating its facilities safely and efficiently.
The company should benefit from higher demand in its polyethylene business in specialty applications, especially food packaging, and strength in global demand for PVC resin. It is seeing strong demand in the downstream building products business on the back of new housing starts and spending on repair and remodeling activities.
The company will also gain from its capacity expansion projects, synergies of acquisitions, and actions to improve operating efficiency and reduce costs. It is also making disciplined investments, developing new products and leveraging its current products and footprint globally.
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 229.3% for the current year. The company’s shares have rallied around 149% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 74% in the past year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 161% in the past year. It currently carries a Zacks Rank #2 (Buy).
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Westlake Chemical (WLK) Stock Up 18% in 3 Months: Here's Why
Westlake Chemical Corporation’s (WLK - Free Report) shares have popped 17.8% over the past three months. The rally has resulted in the stock outperforming its industry’s rise of 13.9% over the same time frame. The company has also topped the S&P 500’s 6.9% rise over the same period.
Let’s take a look into the factors behind this Zacks Rank #1 (Strong Buy) stock’s price appreciation.
What’s Working in WLK’s Favor?
Forecast-topping first-quarter results and upbeat outlook have contributed to the gain in the company’s shares. Westlake Chemical’s earnings of $1.87 per share for the first quarter topped the Zacks Consensus Estimate of $1.56. Sales rose around 22% year over year to $2,357 million and also surpassed the Zacks Consensus Estimate of $1,998.2 million.
The company benefited from increased sales prices and margins for most of its key products including polyethylene and polyvinyl chloride (PVC) resin, and strong demand in downstream building products business in the first quarter.
Westlake Chemical sees continued strong global demand in polyethylene, PVC and downstream building products on strong markets for the downstream uses of its products including residential construction, packaging and healthcare. The company remains focused on operating its facilities safely and efficiently.
The company should benefit from higher demand in its polyethylene business in specialty applications, especially food packaging, and strength in global demand for PVC resin. It is seeing strong demand in the downstream building products business on the back of new housing starts and spending on repair and remodeling activities.
The company will also gain from its capacity expansion projects, synergies of acquisitions, and actions to improve operating efficiency and reduce costs. It is also making disciplined investments, developing new products and leveraging its current products and footprint globally.
Westlake Chemical Corporation Price and Consensus
Westlake Chemical Corporation price-consensus-chart | Westlake Chemical Corporation Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 229.3% for the current year. The company’s shares have rallied around 149% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 74% in the past year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 161% in the past year. It currently carries a Zacks Rank #2 (Buy).
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>