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Westlake Corporation's WLK business units, Westlake Global Compound and Westlake Dimex, have joined forces to combine their sustainability initiatives. Westlake Global Compounds' experience in PVC compounds will be combined with Westlake Dimex's knowledge of recycled materials, assisting Westlake Global Compounds in its efforts to reduce waste and its environmental effects.

The collaboration will concentrate on the reprocessing of Westlake Global Compounds' products as well as Westlake Dimex's toll processing services, such as grinding, shredding, blending and compounding.

Westlake Dimex has received nine GreenCircle Certified Recycled Content certifications, which span a wide range of compounds, landscape and matting products. GreenCircle, an independent third party that validates sustainability claims, has validated three Westlake Dimex compound products, which will be marketed to potential consumers by Westlake Global Compounds representatives.

This collaboration with Westlake Global Compounds will expand Dimex's tolling operations and offerings into worldwide markets while also supporting Westlake's ongoing waste reduction and recycling efforts.

Shares of Westlake have gained 20% over the past year compared with 14.1% rise of its industry.

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The company, on its third-quarter call, said that it expects the fourth-quarter macroeconomic environment to remain weak, with high interest rates and higher inflation leading to lower demand for all of its products and low sales prices in the PEM category. The company believes that its products are well-placed in each of its segments, notwithstanding this short-term forecast.

The North American structural feedstock and energy cost advantage, a high degree of vertical integration and product diversification are expected to drive PEM volumes and profitability.

The company's record performance in the Housing and Infrastructure Products segment demonstrates the strength of its portfolio and its aptitude for navigating these difficult market circumstances. Apart from the regular seasonal drop in sales during the fourth quarter, the company anticipates a certain effect on sales volume due to the high level of borrowing rates.

Westlake Corp. Price and Consensus

Zacks Rank & Key Picks

Westlake currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include The Andersons Inc. ANDE, Cal-Maine Foods Inc. CALM and Steel Dynamics Inc. STLD.

Andersons currently carries a Zacks Rank #1 (Strong Buy). ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. The company’s shares have surged 45.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CalMaine Foods currently carries a Zacks Rank #1. CALM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 131.5%. The company’s shares have inched up 1.5% in the past year.

The Zacks Consensus Estimate for Steel Dynamics’ current-year earnings has been revised upward by 4.3% in the past 60 days. It currently carries a Zacks Rank #1. Steel Dynamics delivered a trailing four-quarter earnings surprise of roughly 6.5%, on average. STLD shares are up around 1.5% in a year.

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