12 Oversold Value Stocks to Buy According to Hedge Funds

9. Westlake Corporation (NYSE:WLK)

Number of Hedge Fund Holders: 34

​Westlake Corporation (NYSE:WLK) is a global manufacturer and supplier of petrochemicals, polymers, and building products. Its operations are divided into two main segments: Performance and Essential Materials, which includes polyethylene, polyvinyl chloride (PVC), and other key chemical products used in packaging, construction, and industrial applications; and Housing and Infrastructure Products (HIP), which manufactures PVC pipes, siding, fittings, and other building materials. The company serves a wide range of end markets including construction, automotive, consumer goods, and packaging.

Westlake Corporation (NYSE:WLK)’s HIP segment generated $4.3 billion in revenue at a 24% EBITDA margin in 2024. The company has demonstrated strong margin improvement in its HIP business, with EBITDA margins nearly doubling from 13% to 24% over the past 6 years. The company maintains a strong market position with its vertically integrated operations, with 85% of chemical business assets located in North America, benefiting from low-cost ethane feedstock. Westlake’s HIP segment has shown robust growth with an 8% increase in sales volumes in 2024, supported by a broad product portfolio and strong geographic presence across North America.

Westlake Corporation (NYSE:WLK) maintains a solid financial position with net debt to adjusted EBITDA well below 1 turn, and 99% of its debt at a fixed rate of 3.4% with a maturity profile of nearly 16 years. With almost $3 billion in cash, the company is positioned for growth opportunities targeting mid-to-high teens after-tax returns. The Chao family maintains significant control with over 70% ownership stake in the company. With a forward P/E of 12.40, WLK is one of the oversold stocks to buy according to hedge funds.