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Should Value Investors Buy Whirlpool (WHR) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Whirlpool (WHR - Free Report) . WHR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.86, which compares to its industry's average of 9.09. Over the past 52 weeks, WHR's Forward P/E has been as high as 9.86 and as low as 7.45, with a median of 9.10.

Investors should also note that WHR holds a PEG ratio of 1.87. 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 2.23. Over the last 12 months, WHR's PEG has been as high as 2.49 and as low as 0.79, with a median of 1.83.

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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