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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Whirlpool (WHR - Free Report) is a stock many investors are watching right now. WHR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.39 right now. For comparison, its industry sports an average P/E of 8.24. Over the past year, WHR's Forward P/E has been as high as 11.59 and as low as 7.01, with a median of 9.24.

We also note that WHR holds a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WHR's PEG compares to its industry's average PEG of 0.89. Within the past year, WHR's PEG has been as high as 3.89 and as low as 0.83, with a median of 1.14.

These are just a handful of the figures considered in Whirlpool's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that WHR is an impressive value stock right now.


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