Whirlpool (WHR) ended the recent trading session at $91.58, demonstrating a +0.96% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.
Heading into today, shares of the maker of Maytag, KitchenAid and other appliances had lost 9.64% over the past month, lagging the Consumer Discretionary sector's loss of 2.8% and the S&P 500's loss of 4.13% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Whirlpool in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.73, indicating a 2.81% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.66 billion, indicating a 18.46% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.52 per share and revenue of $15.44 billion, indicating changes of -22.03% and -7.04%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Whirlpool. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Whirlpool currently has a Zacks Rank of #4 (Sell).
Investors should also note Whirlpool's current valuation metrics, including its Forward P/E ratio of 9.53. For comparison, its industry has an average Forward P/E of 9.53, which means Whirlpool is trading at no noticeable deviation to the group.
The Household Appliances industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 228, positioning it in the bottom 10% 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.
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This article originally published on Zacks Investment Research (zacks.com).
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