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Whirlpool (WHR) Stock Sinks As Market Gains: What You Should Know

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Whirlpool (WHR - Free Report) closed at $26.46 in the latest trading session, marking a -5.13% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.

The stock of maker of Maytag, KitchenAid and other appliances has fallen by 12.76% in the past month, lagging the Consumer Discretionary sector's gain of 0.85% and the S&P 500's gain of 1.46%.

Analysts and investors alike will be keeping a close eye on the performance of Whirlpool in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.01, signifying a 51.67% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.99 billion, down 1.07% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.25 per share and a revenue of $14.92 billion, indicating changes of -63.88% and -3.92%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Whirlpool. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Whirlpool is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Whirlpool is currently trading at a Forward P/E ratio of 12.4. This indicates a discount in contrast to its industry's Forward P/E of 14.93.

We can also see that WHR currently has a PEG ratio of 12.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Household Appliances industry was having an average PEG ratio of 6.42.

The Household Appliances industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 236, this industry ranks in the bottom 5% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WHR in the coming trading sessions, be sure to utilize Zacks.com.

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