In the latest close session, Whirlpool (WHR) was up +1.13% at $42.89. This change outpaced the S&P 500's 0.5% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.31%.
Prior to today's trading, shares of the maker of Maytag, KitchenAid and other appliances had lost 0.28% lagged the Consumer Discretionary sector's gain of 1.82% and the S&P 500's loss of 0.23%.
Market participants will be closely following the financial results of Whirlpool in its upcoming release. The company is forecasted to report an EPS of $0.28, showcasing a 79.1% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.55 billion, indicating a 5.95% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.53 per share and revenue of $14.95 billion, which would represent changes of -59.39% and -3.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Whirlpool. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Whirlpool boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Whirlpool is presently trading at a Forward P/E ratio of 16.74. This signifies a premium in comparison to the average Forward P/E of 15.75 for its industry.
We can also see that WHR currently has a PEG ratio of 16.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Household Appliances was holding an average PEG ratio of 16.74 at yesterday's closing price.
The Household Appliances industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Whirlpool Corporation (WHR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).