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Market Impact: 0.45

Whirlpool (WHR) Surpasses Market Returns: Some Facts Worth Knowing

WHR
Company FundamentalsCorporate EarningsAnalyst EstimatesConsumer Demand & Retail
Whirlpool (WHR) Surpasses Market Returns: Some Facts Worth Knowing

Whirlpool (WHR) closed up 0.43% at $81.72, outperforming the S&P 500, but lagging the Consumer Discretionary sector over the past month. The upcoming earnings release is expected to show a 27.62% year-over-year decline in EPS to $1.73 and a 3.8% decrease in revenue to $3.84 billion; full-year estimates project similar declines, and the stock currently holds a Zacks Rank #4 (Sell) with an unchanged EPS estimate over the last 30 days.

Analysis

Whirlpool (WHR) recently closed at $81.72, marking a +0.43% daily gain and outperforming the S&P 500's 0.01% daily rise. Over the past month, WHR's stock has appreciated 6.17%, lagging the Consumer Discretionary sector's 6.65% gain but outperforming the S&P 500's 5.2% increase. This recent stock performance contrasts with challenging fundamental expectations, as analysts project earnings of $1.73 per share for its upcoming release, representing a significant 27.62% year-over-year decline, alongside an anticipated 3.8% decrease in net sales to $3.84 billion. Full-year forecasts reinforce this cautious outlook, with Zacks Consensus Estimates indicating a 29.48% drop in earnings to $8.61 per share and a 6.7% revenue contraction to $15.5 billion. The Zacks Consensus EPS estimate has remained unchanged over the last 30 days, and Whirlpool currently holds a Zacks Rank #4 (Sell). While its forward P/E ratio of 9.45 is consistent with its industry average, the Household Appliances industry itself is unfavorably positioned, carrying a Zacks Industry Rank of 224, placing it in the bottom 9% of over 250 industries, suggesting broader headwinds for the sector.

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Market Sentiment

Overall Sentiment

moderately negative

Sentiment Score

-0.35

Ticker Sentiment

WHR-0.35

Key Decisions for Investors

  • Investors should exercise significant caution with Whirlpool, given the consensus expectation for substantial year-over-year declines in both upcoming quarterly and full-year earnings and revenue, which is reflected in its Zacks Rank #4 (Sell).
  • The stock's recent monthly gain of 6.17%, while outperforming the S&P 500, should be carefully weighed against the negative fundamental outlook, stagnant analyst EPS estimates, and the weak ranking of the Household Appliances industry.
  • It is advisable to closely monitor Whirlpool's upcoming earnings report for any deviation from these bearish expectations or changes in management guidance, and await potential positive revisions in analyst estimates before considering new investments or increasing current holdings.