Whirlpool (WHR) Dips More Than Broader Market: What You Should Know

In the latest close session, Whirlpool (WHR) was down 7.1% at $37.94. The stock's performance was behind the S&P 500's daily loss of 0.71%. At the same time, the Dow lost 0.79%, and the tech-heavy Nasdaq lost 1.03%.

Heading into today, shares of the maker of Maytag, KitchenAid and other appliances had gained 4.16% over the past month, outpacing the Consumer Discretionary sector's gain of 2.08% and the S&P 500's gain of 2.72%.

The investment community will be paying close attention to the earnings performance of Whirlpool in its upcoming release. The company's upcoming EPS is projected at $1.01, signifying a 51.67% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.99 billion, down 1.07% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.25 per share and revenue of $14.92 billion. These totals would mark changes of -63.88% and -3.92%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Whirlpool. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 30.77% downward. Whirlpool is currently a Zacks Rank #3 (Hold).

Looking at valuation, Whirlpool is presently trading at a Forward P/E ratio of 18.15. This represents no noticeable deviation compared to its industry average Forward P/E of 18.15.

It is also worth noting that WHR currently has a PEG ratio of 18.15. 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. By the end of yesterday's trading, the Household Appliances industry had an average PEG ratio of 9.31.

The Household Appliances industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.

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

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