Daily Stock Pick: WestRock

This week, I'm looking for the seventh materials representative of nine for my Ivy portfolio.

That basic materials sector has has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.

Today I'm reviewing a mid-cap paper and paper products company named Westrock, also known as WRKCo Inc. Their trading ticker symbol is WRK.  I last reported on this company on May 10th.

WestRock manufactures corrugated packaging and consumer packaging such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.

WestRock Company is based in Atlanta, Georgia.

I use three key data points to gauge dividend-paying equities or funds like WestRock Company:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

WRK Price

WestRock's price per share closed at $37.12 yesterday. A year ago its price was $56.39. Price fell $19.27 or over 34% in the past year.

Assuming WestRock's stock trades in the range of $30.00 to $50.00 this year, WestRock's recent $37.12 price could rise by $5.88 and go to $43.00 by late-July, 2020.

WRK Dividends

WestRock's most recent quarterly dividend is $0.455 paid May 20th.

That $0.455 Q payout equates to an annual dividend of $1.82 generating a yield of 4.9% based on yesterday's $37.12 closing price.

Gains For WRK?

Adding the $1.82 annual estimated dividend to my $5.88 estimate of Compass's price upside shows a $7.76 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little over $1,000.00 today at the $37.12 recent stock price, we'd buy 27 WestRock Company shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.37 per share.

Subtract that $0.37 brokerage cost from the estimated $7.76 gross annual gain leaves a net gain of $7.39 X 27 shares = $199.53 or a 19.95% net gain on a $1,002.24 investment.

Therefore, WestRock Company whose trading ticker symbol is WRK now shows a possible net gain of 10.35% including a 4.9% dividend yield.

Fifteen brokers track WestRock Company stock:

Three say "Buy" WRK.

Two say WRK will "Outperform" its peers.

Nine say "Hold" your WRK Shares.

One says "Sell" WRK.

Their consensus score of 2.6 equates to "hold."

Now we can look at WestRock Company and see it has made money, is making money, and could net a 19.95% gain including a 4.9% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if WestRock Company is worth your time and money.

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