10 Best Plastics and Rubber Stocks to Buy According to Analysts

2. Westlake Corporation (NYSE:WLK)

Upside Potential as of January 13: 34.50%

One of the Best Plastics Stocks, Westlake Corporation (NYSE:WLK) is a multinational producer of goods and materials utilized in several industries, such as construction, automotive, healthcare, and packaging. It is among the biggest manufacturers of polyvinyl chloride (PVC) and low-density polyethylene (LDPE) pipes in North America. Furthermore, it is a significant provider of thermoplastic goods that are semi-finished and suitable for compression molding and extrusion.

Westlake Corporation (NYSE:WLK) reported $3.1 billion in net sales for the third quarter of 2024, a 3% decrease from the quarter before. Production interruptions at their ethylene joint venture and one of its chlorovinyl facilities, as well as a 4% decline in sales volume, were the primary causes of this decline. In spite of these obstacles, the average sales price rose by 1%, suggesting that pricing power is somewhat resilient.

The business saved $35 million in the recent quarter, bringing its total cost savings to $120 million so far this year. It is on track to reach its full-year goal of $125-$150 million. Westlake is promoting sustainability with inventions like PVCO and ABA pipe and greater attempts to get recyclable PVC resin. Westlake Corporation (NYSE:WLK) maintains its positive outlook on the housing market despite weather-related interruptions, strengthened by strong connections with homebuilders and housing scarcity measures.

Westlake Corporation (NYSE:WLK) has proven its dedication to sustainability by advancing innovation with products like PVCO and A-B-A multi-layer pipes made from recycled materials. The company improves its market position and development potential by increasing the source of recyclable PVC resin and developing innovative consumer and industrial products through Westlake Dimex.

William B. Gray’s Orbis Investment Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 1.77 million shares worth $266.11 million as of Q3.