Westlake's (WLK) Subsidiary Invests in Blackhorn Ventures
Westlake Corporation's WLK subsidiary, Westlake Innovations, Inc., stated that it has invested in the Blackhorn Industrial Impact Fund II. The fund aims to invest in 40 capital-efficient enterprises that will enable the decarbonization of the U.S. economy's most difficult-to-transition sectors. Westlake's action builds on the company's commitment to contributing to a more sustainable future through continual development of its own manufacturing as well as strategic investments in breakthrough technologies and startups.
The fund is managed by Blackhorn Ventures, a Colorado-based thesis-driven, resource-efficient industrial innovation investment firm that focuses on energy, transportation and logistics, and the built environment. It focuses on investing in visionary startups that are transforming how sectors use resources, such as utilizing technical and scientific advances to set new efficiency standards.
Over the previous five years, Blackhorn Ventures has created a portfolio of 65 companies that have a significant impact on the country's largest and highest-emitting industrial sectors — energy, transportation, buildings and construction, supply chain and logistics.
Blackhorn-funded enterprises are benefiting from a push to save money in corporate America while solving fundamental economic concerns such as labor shortages, housing shortages, supply chain resiliency, energy security and the electrification of the nation's transportation infrastructure. These are companies that are revolutionizing long-standing industries such as construction, manufacturing, healthcare, agriculture, transportation, water and energy.
Shares of Westlake have gained 22.8% over the past year compared with a 16.6% rise of its industry.
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The company, on its first-quarter call, said that it sees continued growth for the Housing and Infrastructure Products segment despite high inflation and interest rates. This is primarily owing to a limited supply of houses and favorable demographics that support sustained housing demand.
In the Performance and Essential Materials segment, near-term performance is expected to remain relatively stable. However, growth in this segment could be limited by weak end-market demand and low-priced imports from Asia in some product categories and regions.
While the company is waiting for broader economic conditions to improve, it is taking steps to boost profitability in its European operations by implementing structural cost reductions. Additionally, it is investing in projects to enhance the reliability and efficiency of its plants.
Westlake Corp. Price and Consensus
Westlake Corp. price-consensus-chart | Westlake Corp. Quote
Zacks Rank & Key Picks
Westlake currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include ATI Inc. ATI, Carpenter Technology Corporation CRS, and Ecolab Inc. ECL.
ATI carries a Zacks Rank #1 (Strong Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company's shares have soared 37.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 97% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. ECL, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company's shares have rallied roughly 33.7% in the past year.
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