Whirlpool Corporation WHR has been making smart moves to enrich customers’ experience, with a focus on continuous expansions and innovations designed to make people’s lives easier and faster.
In the latest update, the company has planned to enhance its U.S. manufacturing network with a modern, state-of-the-art production facility in Perrysburg, OH. This addition will become the company’s 11th factory in the United States and its sixth in Ohio, further strengthening its footprint in American manufacturing.
The company bought a facility previously used for solar panel manufacturing and is investing more than $60 million to convert it into a modern production site. The upgrade will incorporate advanced manufacturing technologies and automation to yield appliance components and subassemblies for washers and dryers. The construction of the facility is likely to unfold in the next two years, generating roughly 100-150 new jobs.
This announcement comes on the heels of a broader phase of domestic investment by Whirlpool, comprising a $300 million commitment to its laundry operations. The investment is focused on expanding capacity through the addition of a new production line and is expected to generate approximately 400-600 new jobs. Roughly 80% of the major appliances the company sells in the US are produced domestically, with it spending $23 billion in manufacturing, labor and logistics in the last decade. WHR incurred more than $6 billion with the U.S. suppliers. Once operational, the plant will act as a key hub for Whirlpool’s operations, offering essential support to its nearby Ohio manufacturing sites.
What Else?
Product innovation is critical to WHR’s growth in the future and margin expansion. Whirlpool continues to prioritize innovation as a key growth lever, introducing premium, feature-rich appliances that cater to the evolving consumer preferences. The company is leveraging innovation as a key growth driver, executing its largest product launch cycle in more than a decade through 2025, with more than 30% of its North American portfolio transitioned to new products across major appliance categories.
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However, this Zacks Rank #5 (Strong Sell) company’s shares have lost 24.8% compared with the industry’s 20.9% drop in the past six months. This downside might be owing to ongoing operational challenges and market challenges. The company’s performance has been plagued by a combination of tariff pressures, weak housing demand and persistent promotional intensity in North America.
Eye These Picks in the Consumer Discretionary Space
We have highlighted three better-ranked stocks, namely, Ralph Lauren RL, Royal Caribbean RCL and Kontoor Brands, Inc. KTB.
Ralph Lauren, a designer and distributor of premium lifestyle products, including apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ralph Lauren has a trailing four-quarter earnings surprise of 9.7%, on average. The Zacks Consensus Estimate for RL’s current financial-year sales indicates growth of 12.4% from the year-ago figure.
Royal Caribbean carries a Zacks Rank of 2 at present. RCL has a trailing four-quarter earnings surprise of 3.7%, on average.
The Zacks Consensus Estimate for RCL’s current financial-year sales indicates an increase of 10.2% from the year-ago level.
Kontoor Brands, which is an apparel company, currently carries a Zacks Rank of 2. KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.
The Zacks Consensus Estimate for KTB’s current financial-year sales is expected to rise 9.2% from the corresponding year-ago reported figure.
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Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
Whirlpool Corporation (WHR): Free Stock Analysis Report
Ralph Lauren Corporation (RL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).