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Is Whirlpool (WHR) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Whirlpool (WHR - Free Report) is a stock many investors are watching right now. WHR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 12.40. Over the past year, WHR's Forward P/E has been as high as 13.40 and as low as 4.16, with a median of 10.10.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WHR has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.59.

Value investors will likely look at more than just these metrics, but the above data helps show that Whirlpool is likely undervalued currently. And when considering the strength of its earnings outlook, WHR sticks out at as one of the market's strongest value stocks.


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