8 Best Plastics Stocks To Invest In Now

5. Westlake Corporation (NYSE:WLK)

Number of Hedge Fund Holders: 38

Westlake Corporation (NYSE:WLK) is a global manufacturer of materials and products used in various industries, including packaging, healthcare, automotive, and construction. It is one of the largest producers of low-density polyethylene (LDPE) and polyvinyl chloride (PVC) pipe in North America. Westlake Corporation (NYSE:WLK) is also a major supplier of semi-finished thermoplastic products for extrusion and compression molding.

For the third quarter of 2024, the company reported net sales of $3.1 billion, a decline of 3% from the previous quarter. This decrease was mainly due to a 4% drop in sales volume and production outages at their ethylene joint venture and one of its chlorovinyl facilities. Despite these challenges, the average sales price increased by 1%, indicating some resilience in pricing power. The company’s net income fell to $183 million, primarily impacted by production outages and higher ethylene feedstock costs.

Westlake Corporation (NYSE:WLK) is actively pursuing cost savings initiatives, achieving approximately $35 million in savings during the third quarter alone. This brings the total savings for the year to about $120 million, moving toward their goal of $125 million to $150 million for 2024.

The company is also focused on innovation, developing products like the PVCO pipe and the A-B-A multi-layer pipe technology that incorporates recycled materials. This aligns with Westlake Corporation’s (NYSE:WLK) commitment to sustainability and positions them favorably in the market. During the third quarter, the corporation increased its efforts to obtain recyclable PVC resin. These materials are processed by Westlake Dimex into new products, including matting for consumers and industries, exercise equipment matting, and landscape edging items. With ongoing efforts to enhance operational efficiency and product offerings, Westlake Corporation (NYSE:WLK) demonstrates potential for growth. Its diverse product range and strategic focus on sustainability make it an attractive investment opportunity in the plastics sector.