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

In the latest close session, Whirlpool (WHR) was down 1.08% at $53.84. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw a decrease of 0.84%.

The maker of Maytag, KitchenAid and other appliances's stock has dropped by 34.59% in the past month, falling short of the Consumer Discretionary sector's loss of 1.84% and the S&P 500's loss of 3.7%.

Investors will be eagerly watching for the performance of Whirlpool in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.72, marking a 57.65% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.51 billion, down 3.01% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.43 per share and revenue of $15.33 billion, which would represent changes of -12.84% and -1.25%, respectively, from the prior year.

Any recent changes to analyst estimates for Whirlpool should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.58% decrease. Right now, Whirlpool possesses a Zacks Rank of #5 (Strong Sell).

Investors should also note Whirlpool's current valuation metrics, including its Forward P/E ratio of 10.03. This represents no noticeable deviation compared to its industry average Forward P/E of 10.03.

It is also worth noting that WHR currently has a PEG ratio of 2.67. 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 average PEG ratio for the Household Appliances industry stood at 2.67 at the close of the market yesterday.

The Household Appliances industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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