Westlake (NYSE:WLK) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Westlake from “strong sell” to “hold,” while maintaining a mixed earnings outlook with higher estimates for parts of 2027 but lower forecasts for late 2027 and 2028.
• Westlake’s latest quarterly results exceeded expectations, with EPS of $2.01 versus the $1.83 consensus and revenue of $3.27 billion, up 10.8% year over year.
• Analyst sentiment remains cautious: the stock has a consensus “hold” rating and $93.92 average price target, while shares traded near $74.46 and remained well below their 200-day moving average.

Westlake (NYSE:WLK - Get Free Report) 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.

Other analysts have also issued research reports about the stock. Bank of America reduced their price target on shares of Westlake from $104.00 to $85.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 30th. Wall Street Zen raised Westlake from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. 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. Royal Bank Of Canada restated an "outperform" rating and set a $95.00 price objective (up from $89.00) on shares of Westlake in a research report on Thursday, August 6th. Finally, UBS Group reaffirmed a "buy" rating and issued a $117.00 price objective (down from $130.00) on shares of Westlake in a research note on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $93.92.

Westlake Stock Down 0.5%

WLK stock opened at $74.46 on Tuesday. Westlake has a 52 week low of $56.33 and a 52 week high of $124.23. The business has a 50-day simple moving average of $76.30 and a 200 day simple moving average of $93.22. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55. The company has a market cap of $9.52 billion, a PE ratio of -7.77 and a beta of 0.63.

Westlake (NYSE:WLK - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.83 by $0.18. Westlake had a negative net margin of 10.94% and a positive return on equity of 0.93%. The firm had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.24 billion. During the same period in the prior year, the company posted ($1.11) earnings per share. The business's revenue for the quarter was up 10.8% on a year-over-year basis. Sell-side analysts anticipate that Westlake will post 3.35 EPS for the current fiscal year.

Insider Activity at Westlake

In other news, Chairman Albert Chao sold 38,873 shares of the stock in a transaction 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 completion of the transaction, the chairman directly owned 642,880 shares in the company, valued at approximately $51,610,406.40. This represents a 5.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Westlake

A number of hedge funds and other institutional investors have recently bought and sold shares of WLK. Diamond Hill Capital Management Inc. acquired a new stake in Westlake during the 4th quarter worth approximately $14,062,000. Corient Private Wealth LLC increased its position in Westlake by 53.6% in the 4th quarter. Corient Private Wealth LLC now owns 50,715 shares of the specialty chemicals company's stock valued at $3,750,000 after acquiring an additional 17,689 shares during the period. Bank of America Corp DE increased its position in Westlake by 28.5% in the 1st quarter. Bank of America Corp DE now owns 236,986 shares of the specialty chemicals company's stock valued at $27,685,000 after acquiring an additional 52,551 shares during the period. Quantbot Technologies LP bought a new position in shares of Westlake during the second quarter valued at $1,117,000. Finally, Arizona State Retirement System bought a new position in shares of Westlake during the fourth quarter valued at $798,000. Institutional investors own 28.40% of the company's stock.

Key Stories Impacting Westlake

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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