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Whirlpool (WHR) Dips More Than Broader Markets: What You Should Know

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Whirlpool (WHR - Free Report) closed the most recent trading day at $163.88, moving -1.48% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Coming into today, shares of the maker of Maytag, KitchenAid and other appliances had lost 9% in the past month. In that same time, the Consumer Discretionary sector lost 0.5%, while the S&P 500 lost 0.62%.

Whirlpool will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2022. In that report, analysts expect Whirlpool to post earnings of $5.65 per share. This would mark a year-over-year decline of 14.91%. Meanwhile, our latest consensus estimate is calling for revenue of $5.38 billion, up 1.09% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.86 per share and revenue of $22.14 billion. These totals would mark changes of -6.51% and +0.71%, respectively, from last year.

Any recent changes to analyst estimates for Whirlpool should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Whirlpool is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Whirlpool currently has a Forward P/E ratio of 6.69. Its industry sports an average Forward P/E of 11.06, so we one might conclude that Whirlpool is trading at a discount comparatively.

It is also worth noting that WHR currently has a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Household Appliances industry currently had an average PEG ratio of 4.32 as of yesterday's close.

The Household Appliances industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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