The Week Ahead: Are Investors Really Too Optimistic About WestRock Co (NYSE: WRK)

WestRock Co (NYSE:WRK) currently has a daily average trading volume of 2.24M but it saw 2048664 shares traded in last market. With a market cap of 13.65B USD, the company’s current market price of $52.88 came rising about 2.36 while comparing to the previous closing price of $51.66. In past 52 weeks, the stock remained buoying in the range of price level as high as $52.13 and as low as $26.85.

Taking a look at 20-day trading activity of WestRock Co (WRK) gives us an average price of $49.64, while its current price level is 1.44% below from 52-week high level whereas it is 96.95% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $48.74 while that of 200 days or SMA-200 reads an average of $40.86. A closer look into the stock’s movement over the week reveals that its volatility is standing at 1.06% during that period while stretching the period over a month that increases to 1.37%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 72.46 which implies that the stock is in overbought territory.

Over the week, WRK’s stock price is moving 2.07% up while it is 12.01% when we observe its performance for the past one month. Year-to-date it is 27.36% up and over the past year, the stock is showing an upside performance of 89.81%.

The latest quarterly earnings report issued by the company reported quarterly earnings per share (EPS) of 0.89 beat the consensus estimate of 0.47 for the same. In next quarter, company is expected to be making quarterly sales of $5.11B as analysts are expecting the sales for current fiscal year at $19.41B and seeing the company making $20.3B in sales next year. Moreover, analysts are in estimates of $5.01B for current-quarter revenue.

Currently, WestRock Co’s total number of outstanding shares is 256.40M. Company’s return on investment (ROI) stands at 1.67% and return on equity (ROE) at 3.09%. It has a price to earnings ratio (P/E ratio) of 44.65 while having a 14.72 of forward P/E ratio. Stock’s beta reads 1.07. Stock has a price to book (P/B) ratio of 1.36 while price to sale or P/S ratio amounts to 0.70. Its return on asset (ROA) is 1.11% on average.