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Should Value Investors Buy Whirlpool (WHR) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Whirlpool (WHR - Free Report) . WHR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.71. This compares to its industry's average Forward P/E of 10.22. Over the past year, WHR's Forward P/E has been as high as 11.59 and as low as 8.12, with a median of 9.58.

Another notable valuation metric for WHR is its P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.03. Within the past 52 weeks, WHR's P/B has been as high as 3.08 and as low as 2.35, with a median of 2.71.

These are only a few of the key metrics included in Whirlpool's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WHR looks like an impressive value stock at the moment.


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