15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

9. Westlake Corp. (NYSE:WLK)

Market Capitalization as of April 28: $11.92 billion

Number of Hedge Fund Holders: 34

Westlake Corp. (NYSE:WLK) manufactures and markets performance and essential materials, along with housing and infrastructure products. It serves various consumer and industrial markets, such as residential construction, flexible & rigid packaging, automotive products, healthcare products, water treatment, and wind turbines.

Westlake’s HIP (Housing and Infrastructure Products) achieved record results in 2024. In Q4 2024, HIP experienced a 7% year-over-year increase in sales volume, which was driven by the demand for pipe and fittings, as well as siding and trim. For the full year 2024, the HIP achieved record income from operations of $807 million.

Notably, HIP has set annual records for income from operations in each of the last 5 years. However, on March 28, Truist Securities lowered its price target on the stock from $166 to $155 while maintaining a Buy rating. Analyst Peter Osterland revised estimates to reflect a more conservative outlook for Westlake’s performance in its Performance Materials (PEM) segment, especially in H1 2025. This is partly driven by input cost pressure and outage-related expenses.