WestRock Company Stock Drops 11% In A Week – What To Expect?

WestRock Company stock (NYSE: WRK) has decreased 11% over the last 5 trading days, after the company disclosed details about the recent ransomware attack on 25th January. The incident affected some of its operational and information technology systems and the company is working to remediate its effects. That said, WRK, one of the world’s largest paper and packaging companies, has outperformed consensus estimates in first-quarter 2021 results released last week (FY Oct-Sept). It reported revenues of $4.4 billion – almost flat revenues as compared to the year-ago period. While Consumer packaging revenues increased by 4% y-o-y driven by higher sales volumes and increased consumer demand, Corrugated Packaging segment sales were down 1.5% due to the negative impact of the Covid-19 crisis. Overall, we expect the improvement in consumer demand and higher sales volume to benefit WestRock Company’s top-line in the subsequent quarters.

The ransomware incident was primarily responsible for an 11% drop in WRK stock in a week. In comparison, the broader S&P 500 declined by just 3.2% over the last 5 trading days. Now, is WRK stock poised to grow further? We believe that there is an 86% chance of a rise in WRK stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last 5 years. See our analysis on WestRock Company Stock Chances Of Rise for more details.

5D: WRK -11%, vs. S&P500 -3.2%; Underperformed market

(2% likelihood event)

  • WestRock Company stock declined 11% over a 5-day trading period ending 2/1/2021, compared to a broader market (S&P500) decline of 3.2%
  • A change of -11% or more over 5 trading days is a 2% likelihood event, which has occurred 30 times out of 1256 in the last 5 years

MORE FOR YOU

10D: WRK -12%, vs. S&P500 -2%; Underperformed market

(23% likelihood event)

  • WestRock Company stock declined 12% over the last 10 trading days (2 weeks), compared to a broader market (S&P500) decline of 2.0%
  • A change of -12% or more over 10 trading days is a 23% likelihood event, which has occurred 288 times out of 1240 in the last 5 years

21D: WRK -3.8%, vs. S&P500 -0.2%; Underperformed market

(25% likelihood event)

  • WestRock Company stock declined 3.8% the last 21 trading days (1 month), compared to a broader market (S&P500) decline of 0.2%
  • A change of -3.8% or more over 21 trading days is a 25% likelihood event, which has occurred 306 times out of 1198 in the last 5 years

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance TeamsProduct, R&D, and Marketing Teams

Comments are closed.