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Whirlpool (WHR) Downgraded to Strong Sell: Find Out Why
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World’s leading home appliances manufacturer Whirlpool Corporation (WHR - Free Report) has been downgraded to a Zacks Rank #5 (Strong Sell). The company has underperformed the Zacks categorized Home Furnishing-Appliance industry, having returned a marginal 0.8% in the past six months, compared with the industry's growth of 5.2%. Also, the stock exhibits a VGM Score of “D”, thus making it a non-favorite pick.
The estimates have been witnessing downward revisions in the past 60 days. The Zacks Consensus Estimate of $14.17 and $15.98 for 2016 and 2017 declined 49 cents and 96 cents, respectively, over the said time frame. Moreover, the Zacks Consensus Estimate for fourth-quarter 2016 has decreased 36 cents to $4.38, over the past 60 days.
The fall in estimates was a result of the company’s dismal third-quarter 2016 performance, as both the top and bottom line missed estimates. Lingering currency headwinds and weak appliance demand in the U.S. and the UK played spoilsport in the reported quarter.
After delivering a positive earnings surprise of 4.9% in second-quarter 2016, the company succumbed to a negative surprise of 5.7% in the third quarter. Also, revenues of $5,248 million fell short of the Zacks Consensus Estimate of $5,310 million and down 0.5% year over year. Further, the company’s top-line has missed the Zacks Consensus Estimate in six out of seven quarters.
Soft demand trends in the U.S. and the UK, along with further devaluation of the British pound due to Brexit led the company to lower its adjusted earnings guidance for 2016. Also, management tweaked the upper end of its 2016 GAAP earnings projection. It now anticipates its 2016 adjusted earnings per share in the range of $14.00–$14.25, compared with $14.25–$14.75 guided previously.
Moreover, the company remains vulnerable to the risks of operating in global markets and high customer concentration. Also, volatility in commodity prices may adversely affect the company’s operating performance.
Stocks that Warrant a Look
Some better-ranked stocks include The Children's Place, Inc. (PLCE - Free Report) , Perry Ellis International, Inc. , and Tailored Brands, Inc. .
The Children's Place, with a long-term earnings growth rate of 10.3%, has surged 96.4% year to date. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Perry Ellis, which carries a Zacks Rank #2 (Buy), has gained roughly 49.5% year to date.
Tailored Brands, a Zacks Rank #2 stock with a long-term earnings growth rate of 17.5%, has skyrocketed 137.4% in the past six months.
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Whirlpool (WHR) Downgraded to Strong Sell: Find Out Why
World’s leading home appliances manufacturer Whirlpool Corporation (WHR - Free Report) has been downgraded to a Zacks Rank #5 (Strong Sell). The company has underperformed the Zacks categorized Home Furnishing-Appliance industry, having returned a marginal 0.8% in the past six months, compared with the industry's growth of 5.2%. Also, the stock exhibits a VGM Score of “D”, thus making it a non-favorite pick.
The estimates have been witnessing downward revisions in the past 60 days. The Zacks Consensus Estimate of $14.17 and $15.98 for 2016 and 2017 declined 49 cents and 96 cents, respectively, over the said time frame. Moreover, the Zacks Consensus Estimate for fourth-quarter 2016 has decreased 36 cents to $4.38, over the past 60 days.
The fall in estimates was a result of the company’s dismal third-quarter 2016 performance, as both the top and bottom line missed estimates. Lingering currency headwinds and weak appliance demand in the U.S. and the UK played spoilsport in the reported quarter.
After delivering a positive earnings surprise of 4.9% in second-quarter 2016, the company succumbed to a negative surprise of 5.7% in the third quarter. Also, revenues of $5,248 million fell short of the Zacks Consensus Estimate of $5,310 million and down 0.5% year over year. Further, the company’s top-line has missed the Zacks Consensus Estimate in six out of seven quarters.
Soft demand trends in the U.S. and the UK, along with further devaluation of the British pound due to Brexit led the company to lower its adjusted earnings guidance for 2016. Also, management tweaked the upper end of its 2016 GAAP earnings projection. It now anticipates its 2016 adjusted earnings per share in the range of $14.00–$14.25, compared with $14.25–$14.75 guided previously.
WHIRLPOOL CORP Price and Consensus
WHIRLPOOL CORP Price and Consensus | WHIRLPOOL CORP Quote
Moreover, the company remains vulnerable to the risks of operating in global markets and high customer concentration. Also, volatility in commodity prices may adversely affect the company’s operating performance.
Stocks that Warrant a Look
Some better-ranked stocks include The Children's Place, Inc. (PLCE - Free Report) , Perry Ellis International, Inc. , and Tailored Brands, Inc. .
The Children's Place, with a long-term earnings growth rate of 10.3%, has surged 96.4% year to date. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Perry Ellis, which carries a Zacks Rank #2 (Buy), has gained roughly 49.5% year to date.
Tailored Brands, a Zacks Rank #2 stock with a long-term earnings growth rate of 17.5%, has skyrocketed 137.4% in the past six months.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>