Here's My Top Stock to Buy in September
Wall Street seems fixated on the wrong metrics when it comes to paper-based packaging leader WestRock (NYSE: WRK). The company continues to grow revenue and operating income, invest in technology upgrades to keep its manufacturing fleet competitive in a global market, and deliver value to customers. The stock pays an annual dividend yield of 5.3% and, unlike some peers, the business has fully funded its pension obligations.
Despite the undeniable progress, shares of WestRock have fallen 46% since the end of 2017. The stock now trades at just 10 times expected earnings (well below the average for the peer group) and 0.74 times book value. The latter means the stock would have to rise 35% just to be valued fairly against its balance sheet.
While investors cannot discount the uncertainty surrounding the trade war between the United States and China or the rising risks of a global recession, WestRock remains a solid business trading at a great price. Here's why it's my top stock to buy in September.
Source Fool.com
