We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where Westlake Corporation (NYSE:WLK) stands against other worst performing large cap stocks to buy according to analysts.
How Did The Market Perform in Q4 2024?
On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.
READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.
On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.
As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.
Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.
Our Methodology
To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A closeup of a Petrochemical product being inspected for quality assurance.
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.
Overall, WLK ranks 7th on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of WLK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WLK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.