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Westlake Chemical (WLK) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Westlake Chemical (WLK - Free Report) closed at $94, marking a -0.59% move from the previous day. This move lagged the S&P 500's daily gain of 1.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the chemical company had lost 3.38% in the past month. In that same time, the Basic Materials sector lost 7.3%, while the S&P 500 gained 3.2%.
Investors will be hoping for strength from Westlake Chemical as it approaches its next earnings release, which is expected to be August 2, 2022. In that report, analysts expect Westlake Chemical to post earnings of $6.33 per share. This would mark year-over-year growth of 56.68%. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, up 50.22% from the prior-year quarter.
WLK's full-year Zacks Consensus Estimates are calling for earnings of $21.94 per share and revenue of $16.46 billion. These results would represent year-over-year changes of +40.82% and +39.74%, respectively.
Investors should also note any recent changes to analyst estimates for Westlake Chemical. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.23% lower. Westlake Chemical is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Westlake Chemical has a Forward P/E ratio of 4.31 right now. Its industry sports an average Forward P/E of 7.64, so we one might conclude that Westlake Chemical is trading at a discount comparatively.
Also, we should mention that WLK has a PEG ratio of 0.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Plastic industry currently had an average PEG ratio of 0.18 as of yesterday's close.
The Chemical - Plastic industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 250, which puts it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WLK in the coming trading sessions, be sure to utilize Zacks.com.
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Westlake Chemical (WLK) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Westlake Chemical (WLK - Free Report) closed at $94, marking a -0.59% move from the previous day. This move lagged the S&P 500's daily gain of 1.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the chemical company had lost 3.38% in the past month. In that same time, the Basic Materials sector lost 7.3%, while the S&P 500 gained 3.2%.
Investors will be hoping for strength from Westlake Chemical as it approaches its next earnings release, which is expected to be August 2, 2022. In that report, analysts expect Westlake Chemical to post earnings of $6.33 per share. This would mark year-over-year growth of 56.68%. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, up 50.22% from the prior-year quarter.
WLK's full-year Zacks Consensus Estimates are calling for earnings of $21.94 per share and revenue of $16.46 billion. These results would represent year-over-year changes of +40.82% and +39.74%, respectively.
Investors should also note any recent changes to analyst estimates for Westlake Chemical. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.23% lower. Westlake Chemical is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Westlake Chemical has a Forward P/E ratio of 4.31 right now. Its industry sports an average Forward P/E of 7.64, so we one might conclude that Westlake Chemical is trading at a discount comparatively.
Also, we should mention that WLK has a PEG ratio of 0.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Plastic industry currently had an average PEG ratio of 0.18 as of yesterday's close.
The Chemical - Plastic industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 250, which puts it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WLK in the coming trading sessions, be sure to utilize Zacks.com.