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Whirlpool (WHR) Falls More Steeply Than Broader Market: What Investors Need to Know

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Whirlpool (WHR - Free Report) closed at $123.88 in the latest trading session, marking a -0.46% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.3%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.25%.

Shares of the maker of Maytag, KitchenAid and other appliances witnessed a gain of 10.19% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 5.25% and the S&P 500's gain of 1.09%.

Investors will be eagerly watching for the performance of Whirlpool in its upcoming earnings disclosure. The company is expected to report EPS of $4.35, up 12.99% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.25 billion, indicating a 16.49% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.27 per share and revenue of $16.72 billion, which would represent changes of -24.07% and -14.05%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Whirlpool. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Whirlpool is currently a Zacks Rank #3 (Hold).

Digging into valuation, Whirlpool currently has a Forward P/E ratio of 10.14. This expresses a discount compared to the average Forward P/E of 21.11 of its industry.

The Household Appliances industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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