Zacks Research Upgrades Westlake (NYSE:WLK) to “Hold”

Westlake (NYSE:WLK) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Westlake’s Q3 2026 earnings at $1.17 EPS, Q4 2026 earnings at $0.37 EPS, FY2026 earnings at $2.78 EPS, Q1 2027 earnings at $0.50 EPS, Q2 2027 earnings at $0.99 EPS, Q3 2027 earnings at $0.34 EPS, Q4 2027 earnings at $0.56 EPS, FY2027 earnings at $2.40 EPS, Q1 2028 earnings at ($0.37) EPS, Q2 2028 earnings at $0.65 EPS and FY2028 earnings at $1.60 EPS.

WLK has been the subject of a number of other reports. Weiss Ratings reissued a “sell (d)” rating on shares of Westlake in a report on Friday, July 17th. Wall Street Zen raised shares of Westlake from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Wells Fargo & Company decreased their target price on shares of Westlake from $110.00 to $89.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 5th. BMO Capital Markets reissued a “market perform” rating and set a $96.00 price target on shares of Westlake in a report on Monday, July 6th. Finally, Mizuho cut their price objective on shares of Westlake from $110.00 to $88.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. Three equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $93.92.

Westlake Price Performance

Shares of WLK opened at $74.46 on Tuesday. The business’s 50-day moving average is $76.30 and its two-hundred day moving average is $93.22. The company has a market capitalization of $9.52 billion, a P/E ratio of -7.77 and a beta of 0.63. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $124.23. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.70 and a current ratio of 2.45.

Westlake (NYSE:WLK) last issued its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.83 by $0.18. The business had revenue of $3.27 billion during the quarter, compared to analysts’ expectations of $3.24 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.The company’s revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($1.11) EPS. Research analysts predict that Westlake will post 3.35 earnings per share for the current year.

Insider Activity

In other news, Chairman Albert Chao sold 38,873 shares of Westlake stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total value of $3,120,724.44. Following the sale, the chairman directly owned 642,880 shares of the company’s stock, valued at $51,610,406.40. The trade was a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 1.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Westlake during the third quarter worth $28,000. Quarry LP purchased a new position in shares of Westlake in the fourth quarter worth about $31,000. Fifth Third Bancorp lifted its stake in shares of Westlake by 71.3% in the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company’s stock worth $42,000 after buying an additional 234 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new position in Westlake during the third quarter worth about $53,000. Finally, NewEdge Advisors LLC grew its stake in Westlake by 49.6% during the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock valued at $57,000 after acquiring an additional 247 shares in the last quarter. Hedge funds and other institutional investors own 28.40% of the company’s stock.

Westlake News Summary

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Zacks raised its EPS forecasts for Q1 2027 to $0.50 from $0.43, Q2 2027 to $0.99 from $0.66, Q4 2027 to $0.56 from $0.14, and full-year 2027 to $2.40 from $1.96. The firm also increased its Q2 2028 estimate to $0.65 from $0.35. These revisions suggest some expected improvement in portions of Westlake’s specialty-chemicals business. Westlake analyst estimates
• Positive Sentiment: Recent coverage highlighted Westlake’s stronger quarterly results: the company reported adjusted EPS of $2.01, exceeding the $1.83 consensus estimate, while revenue of $3.27 billion also topped expectations and increased 10.8% year over year. Why Is Westlake in Focus After Stronger Results?
• Neutral Sentiment: Analysts collectively rate Westlake at “Hold,” indicating that improving results are offset by concerns about the broader earnings outlook. Westlake Receives Consensus Hold Recommendation
• Negative Sentiment: Zacks cut its Q3 2027 EPS forecast to $0.34 from $0.73, Q1 2028 to a loss of $0.37 from a loss of $0.02, and FY2028 to $1.60 from $2.00. Its FY2026 estimate of $2.78 is also below the broader full-year consensus of $3.43, reinforcing concerns about profitability.
• Negative Sentiment: Westlake’s valuation backdrop remains challenging: the company recently reported a negative net margin, and its shares remain well below their 200-day moving average. The combination of a “Strong Sell” rating, uneven forward estimates, and cyclical chemical-market risks is likely contributing to the stock’s weakness.

About Westlake

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.