WLK Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Westlake Corp (WLK) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company faces significant financial challenges, including a sharp decline in revenue, net income, and EPS in the latest quarter. Insider selling has surged dramatically, and options data indicates bearish sentiment. While there are some positive catalysts, such as exposure to construction recovery and cost reductions, the overall outlook is clouded by weak industry fundamentals and negative sentiment from analysts. For a long-term investor, it is better to wait for clearer signs of recovery or improved financial performance before considering an entry.
The technical indicators show mixed signals. The MACD is positive and contracting, suggesting bullish momentum, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the RSI is at 73.099, which is nearing overbought territory, and the stock is trading close to its resistance level (R1: 101.644). This suggests limited upside potential in the short term.
Exposure to construction recovery and cost reductions, which could drive earnings growth in 2026-
Low leverage, allowing for opportunistic M&A and organic investments.
Analysts like RBC and Truist maintain positive ratings and price targets near the current price.
Significant insider selling, with a 49690.74% increase in the last month.
Weak financial performance in Q3 2025, with revenue down 8.95% YoY and a massive net income loss of -$778M.
Analysts like Mizuho and Morgan Stanley have downgraded the stock or lowered price targets due to weak industry fundamentals and oversupply concerns in the chemicals market.
Options data indicates bearish sentiment.
Westlake's Q3 2025 financial performance was poor, with revenue dropping 8.95% YoY to $2.84B, net income plummeting by 827.10% to -$778M, and EPS falling by 831.33% to -6.07. Gross margin also declined significantly to 7.26%, down 51.86% YoY. These figures highlight significant challenges in the company's core business.
Analyst sentiment is mixed but leans negative. Mizuho recently downgraded the stock to Neutral, citing a weakening outlook for its core businesses. RBC and Truist remain positive, with price targets of $100 and $99, respectively, but other firms like Morgan Stanley and BofA have lowered their price targets due to industry challenges and weak financial performance. The average price target is near the current price, suggesting limited upside potential.
