Reasons Why You Should Hold WestRock In Your Portfolio Now
Zacks Investment Research | Mar 27, 2018 10:52PM ET
WestRock Company (NYSE:WRK) remains well-poised for growth, backed by its focus on execution of capital allocation strategy and KapStone acquisition. Improving industry conditions and a positive volume along with pricing dynamics are other key growth drivers for the company. However, raw material cost inflation and weak demand for processed foods as well as carbonated drinks remain headwinds.
The provider of paper and packaging solutions with a market capitalization of approximately $16 billion, carries a Zacks Rank #3 (Hold). The stock has an estimated long-term earnings growth rate of 12.8%.
Below, we briefly discuss the company’s potential growth drivers and possible downsides.
Factors Favoring WestRock
Positive Estimate Revisions, Growth Projections
The Zacks Consensus Estimate for 2018 and 2019 for WestRock has been revised nearly 1% and around 5% upward, respectively, over the past 30 days. The Zacks Consensus Estimate for current-year earnings is pegged at $3.90, reflecting an estimated year-over-year growth of 49%. The Zacks Consensus Estimate for earnings for 2019 is pegged at $4.76, representing an estimated year-over-year surge of 82%.
Positive Earnings Surprise History
WestRock outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 13.48%.
Price Performance
Shares of WestRock have outperformed its Zacks Investment Research
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