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We expect Whirlpool Corp. (WHR - Analyst Report), the world’s largest home-appliances manufacturer, to beat expectations when it reports third-quarter 2013 results on Oct 22.

Why a Likely Positive Surprise?

Our proven model shows that Whirlpool may beat earnings because it has the right combination of 2 key components.

Positive Zacks ESP: Whirlpool currently has an Earnings ESP of +0.38%. This is because the Most Accurate Estimate stands at $2.65 per share, while the Zacks Consensus Estimate is pegged at $2.64.

Zacks #3 Rank (Hold): Note that stocks with a Zacks Rank #1, 2 and 3 have a higher chance of beating earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of Whirlpool’s Zacks Rank #3 (Hold) and Earnings ESP of +0.38% makes us confident of a positive earnings beat on Oct 22.

What is Driving Better-than-Expected Earnings?

Over the last 101 years, Whirlpool has emerged as the leading manufacturer and supplier of major home appliances. We believe that the company’s recent collaboration with SodaStream International, Ltd. (SODA - Snapshot Report) to develop an in-home carbonated system will not only help Whirlpool expand its KitchenAid branded product category but will also boost its top line and induce a competitive edge. Furthermore, we consider Whirlpool’s consistent focus on developing new products, its cost-cutting measures, and diversification of business across the world – to eliminate geographical risks arising from concentration in one region – to bode well for future growth.

The company has surpassed the Zacks Consensus Estimate thrice in the trailing four quarters with an average surprise of approximately 3.9%.

Other Stocks to Consider

Whirlpool is not the only firm we are looking up to this earnings season. The following companies are also likely to beat earnings in the to-be-reported quarter:

General Electric Company (GE - Analyst Report) with an Earnings ESP of +1.85% and a Zacks Rank #3 (Hold).

Fortune Brands Home & Security, Inc. (FBHS - Snapshot Report) with an Earnings ESP of +2.44% and a Zacks Rank #3 (Hold).

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