7. Westlake Corporation (NYSE:WLK)
Market Capitalization: $13.94 Billion
1-Year Performance: -18.26%
Number of Hedge Fund Holders: 34
Analyst Upside Potential: 17.54%
Westlake Corporation (NYSE:WLK) is an international company that makes essential materials and products used in various industries. It operates through two main segments including Performance and Essential Materials where the company produces chemicals like polyethylene and vinyls, which are crucial for making plastics used in packaging, medical devices, and automotive parts. Secondly, it operates the Housing and Infrastructure Products segment where the company focuses on building materials such as PVC pipes, siding, windows, and roofing.
Westlake Corporation (NYSE:WLK) faced some challenges during the fiscal year 2024 as highlighted by the Q4 2024 results. The company reported a year-over-year decline of 3% in net sales for the year, despite a 7% increase in sales volumes. This decline was due to a 10% drop in average sales prices, particularly for core vinyls and epoxy resin. This decline led to Mizuho lowering the firm’s target on the stock from $155 to $132 while maintaining an Outperform rating.
In terms of the quarterly performance, the company saw year-over-year sales volume and EBITDA growth in both its segments. The Housing and Infrastructure Products segment experienced a strong 7% sales volume growth, driven by demand for pipe, fittings, siding, and trim. Whereas the Performance and Essential Materials segment reported a 1% volume growth, driven by export demand and higher polyethylene production. Westlake Corporation (NYSE:WLK) remains one of the strong market shareholders in North America, aided by a diverse product portfolio and a globally advantageous feedstock position. It is one of the worst-performing large-cap stocks to buy according to analysts.
