The stock offers an opportunity to enter into a strong bullish trend.
Westlake chemical strong fundamentals are highlighted by its Surperformance ratings. The group manages to steadily increase its sales and its profitability as well. Net margin grew of 50% last year and analysts expect it to reach 17.3% this year. Debt has been largely reduced, from a leverage of 3.5 in 2008 to zero last year. Moreover, EPS and revenues revisions show the good momentum of the activity. Thus, 2014 EPS has been revised upward of 35% on a YoY basis. Furthermore, considering P/E ratio at 12.2x the current estimations, the stock has a strong upside potential.
From a technical viewpoint, the stock is in a strong long term bullish trend. Stock price are evolving in a rising wedge. The last bearish movement has brought the stock at the bottom of this channel, offering an interesting entry level. The equity could rapidly rebound on this level to its recent highs.
Investors could take long position at the current level in order to profit of an interesting entry point. The target will then be USD 65.7 and then recent top at USD 69. A stop loss will be placed under the entry point protecting from a downward exit of this trend.
Westlake Corporation is a manufacturer and supplier of materials and products that enhance life every day. The Company has operations in Asia, Europe, and North America. It provides building blocks for solutions from housing and construction to packaging and healthcare to automotive and the consumer. Its segments include Performance and Essential Materials and Housing and Infrastructure Products. The Performance and Essential Materials includes Westlake North American Vinyls, Westlake North American Chlor-alkali & Derivatives, Westlake European & Asian Chlorovinyls, Westlake Olefins, Westlake Polyethylene and Westlake Epoxy. The Housing and Infrastructure Products include Westlake Royal Building Products, Westlake Pipe and Fittings, Westlake Global Compounds and Westlake Dimex. Its products are used in diverse consumer and industrial markets, including residential construction, automotive products, water treatment, wind turbines, coatings as well as other durable and non-durable goods.
WESTLAKE CORPORATION 
