Whirlpool (WHR) ended the recent trading session at $36.91, demonstrating a -3.48% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
The stock of maker of Maytag, KitchenAid and other appliances has fallen by 1.6% in the past month, lagging the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Whirlpool in its upcoming release. It is anticipated that the company will report an EPS of $0.08, marking a 94.03% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.61 billion, down 4.45% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.16 per share and a revenue of $15.02 billion, indicating changes of -81.38% and -3.26%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Whirlpool. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 54.41% fall in the Zacks Consensus EPS estimate. Whirlpool is currently a Zacks Rank #5 (Strong Sell).
Looking at valuation, Whirlpool is presently trading at a Forward P/E ratio of 33.11. For comparison, its industry has an average Forward P/E of 28.5, which means Whirlpool is trading at a premium to the group.
Investors should also note that WHR has a PEG ratio of 33.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Household Appliances industry currently had an average PEG ratio of 16.94 as of yesterday's close.
The Household Appliances industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Whirlpool Corporation (WHR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).