WLK stock: buy or sell?

WLK stock price: $65.09 -0.93% At close on September 20th, 2019

Updated on:
September 20th, 2019

0

Westlake Chemical shares depreciated -0.93% to $65.09 today. On Tuesday WLK plummed a scary -5.17%.

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products primarily in North America and Europe.

Should I buy WLK stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Westlake Chemical stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean WLK will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Westlake Chemical stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 15 ratings published for WLK stock in the last month.

Is WLK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-18Nomuran/aReduce
2019-8-9BMO Capital Marketsn/aMarket Perform
2019-8-7Nomuran/aReduce
2019-8-16Bank of AmericaBuyUnderperform
2019-7-22NomuraNeutralReduce
2019-7-2Nomuran/aNeutral
2019-7-2BarclaysOverweightEqual Weight
2019-5-15Goldman Sachs GroupNeutralBuy
2019-5-13Royal Bank of Canadan/aSector Perform
2019-4-5Cascend Securitiesn/aBuy
2019-3-21BarclaysPositiveOverweight
2019-2-6Cowenn/aMarket Perform
2019-2-26Susquehanna BancsharesPositiveNeutral
2019-2-25CowenMarket PerformMarket Perform
2019-1-8Bank of AmericaUnderperformBuy

WLK stock analysis

Daily outlook

Shares of Westlake Chemical closed today at $65.09 and depreciated a lame -0.93%.

Westlake Chemical depreciated a lame -0.93% and closed at $65.09. WLK is retaking the upward trend marking a new rising bottom heading to break out over $71.13. Since SMA50d and SMA100d crossed up on Sep/13, WLK price climbed $0.83 per share (1.29%).

WLK stock chart (daily)

Weekly outlook

After boosting an exceptional 8.04% in a week last week, Westlake Chemical closed this week at $65.09 and slightly fell an unpleasant -1.23%. By mid August WLK plummed a hair-raising -7.42% in just one week.

Since late July, when WLK stock price broke down the 40-weeks moving avarage line, it slid $-3.55 per share (-5.17%). Stocks under the 40-weeks moving average line are usually not recommended for average traders.

WLK stock chart (weekly)

WLK stock price history

WLK IPO was on August 12th, 2004 at $5.91 per share1. Since then, WLK stock surged a 1,001.40%, with an average of 66.80% per year. If you had invested $1,000 in WLK stock in 2004, it would worth $10,014.00 today.

1: Adjusted price after possible price splits or reverse-splits.

WLK stock historical price chart

WLK stock reached 52-week highs on September at $86.27, and all-time highs 2018-05-22 with a price of 121.82.

WLK stock price target is $69.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 11 price predictions for WLK stock posted in the last 30 days:
WLK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-18NomuraLowers Target$53.00$51.00-3.8%
2019-8-9BMO Capital MarketsLowers Target$75.00$71.00-5.3%
2019-8-7NomuraLowers Target$57.00$53.00-7%
2019-7-22NomuraReiterates$58.00$57.00-1.7%
2019-7-2NomuraLowers Target$59.00$58.00-1.7%
2019-7-2BarclaysDowngrades$72.00$71.00-1.4%
2019-5-13Royal Bank of CanadaLowers Targetn/a$62.00-
2019-4-5Cascend SecuritiesInitiatesn/a$94.00-
2019-3-21BarclaysRaises Target$82.00$90.009.8%
2019-2-6CowenLowers Target$82.00$80.00-2.4%
2019-2-25CowenReiterates$80.00$78.00-2.5%
(in average)$68.70$69.501.0%
The price forecast for Westlake Chemical stock is $69.50, moving in a range between $94.00 and $51.00. In average, analysts' outlook on WLK price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Westlake Chemical missed the expectations of the experts and reported a spooky EPS of $1.02 per share when experts were expecting $1.72.
WLK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.21n/a
2017-Q32017-11-071.451.6111.0%
2017-Q42018-02-201.691.62-4.1%
2018-Q12018-05-032.092.247.2%
2018-Q22018-08-022.522.45-2.8%
2018-Q32018-11-062.242.354.9%
2018-Q42019-02-191.721.02-40.7%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a great gain of 7.39% to $8,635.00 million USD. Nonetheless, its profit margin (compared to revenues) decreased to 11.53%, that is $996.00 million.

WLK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,760 M-$608 M16.2%-
2014$4,415 M17.43%$679 M15.4%11.62%
2015$4,463 M1.09%$646 M14.5%-4.79%
2016$5,075 M13.71%$399 M7.9%-38.26%
2017$8,041 M58.43%$1,304 M16.2%226.93%
2018$8,635 M7.39%$996 M11.5%-23.62%

Quarterly financial results

Westlake Chemical posted $1,995.00 million in revenues for 2018-Q4, a -11.53% less compared to previous quarter. Reported quarter earnings marked $123.00 M with a profit margin of 6.17%. Profit margin fell a -7.49% compared to previous quarter when profit margin was 13.66%. When comparing turnover to same quarter last year, Westlake Chemical sales marked an ugly movement and stayed constant a -0.75%.
WLK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,980 M-$152 M7.7%-
2017-Q3$2,109 M6.51%$211 M10.0%38.70%
2017-Q4$2,010 M-4.69%$802 M39.9%280.40%
2018-Q1$2,150 M6.97%$287 M13.3%-64.21%
2018-Q2$2,235 M3.95%$278 M12.4%-3.14%
2018-Q3$2,255 M0.89%$308 M13.7%10.79%
2018-Q4$1,995 M-11.53%$123 M6.2%-60.06%
2019-Q1$2,025 M1.50%$72 M3.6%-41.46%

Westlake Chemical ownership

When you are planning to invest in a stock, it's worth to overview its ownership structure.

Westlake Chemical shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 72.14% of all shares.

In case of Westlake Chemical stock, 28.58% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WLK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Westlake Chemical:

WLKALBCEEMNHON
Market cap$8.3 B$7.2 B$15.2 B$9.9 B$121.2 B
Total shares128.3 M106.0 M123.7 M137.0 M719.5 M
Float shares34.9 M105.3 M122.9 M136.2 M687.1 M
  - Institutional holdings (%)28.6%98.6%105.7%85.6%77.1%
  - Insider holdings (%)72.1%0.5%0.6%0.4%0.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

WLK summary

Friday, September 20th, 2019
Open$65.90
Close$65.09
Day range$64.76 - $66.66
Previous close$65.70
Session gain-0.93%
Average true range$2.77
50d mov avg$63.49
100d mov avg$63.41
200d mov avg$67.08
Daily patternlb02a
Weekly pattern lb06a

Westlake Chemical performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected Albemarle, Celanese, Eastman Chemical, Honeywell International, Huntsman, Olin, PolyOne and Exxon Mobil as the bechmarking frame for Westlake Chemical stock.
Stock3m6m12m
WLKWestlake Chemical-1.60%-0.63%-23.06%
ALBAlbemarle0.46%-16.58%-34.01%
CECelanese16.77%26.48%7.99%
EMNEastman Chemical-4.29%-2.10%-25.14%
HONHoneywell Interna...-2.92%9.13%7.19%
HUNHuntsman16.93%6.74%-18.75%
OLNOlin-13.10%-15.81%-30.10%
POLPolyOne11.70%16.28%-25.43%
XOMExxon Mobil-5.75%-7.97%-11.18%

Westlake Chemical competitors

We chose a few stocks to conform a list of Westlake Chemical competitors to check if you are interested in investing in WLK:

Latest WLK stock news