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

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Whirlpool (WHR) closed at $155.36 in the latest trading session, marking a -1.66% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.

Heading into today, shares of the maker of Maytag, KitchenAid and other appliances had lost 12.68% over the past month, lagging the Consumer Discretionary sector's loss of 7.27% and the S&P 500's loss of 6.69% in that time.

Investors will be hoping for strength from Whirlpool as it approaches its next earnings release, which is expected to be July 25, 2022. On that day, Whirlpool is projected to report earnings of $5.65 per share, which would represent a year-over-year decline of 14.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.38 billion, up 1.09% from the year-ago period.

WHR's full-year Zacks Consensus Estimates are calling for earnings of $24.86 per share and revenue of $22.14 billion. These results would represent year-over-year changes of -6.51% and +0.71%, respectively.

It is also important to note the recent changes to analyst estimates 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Whirlpool is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Whirlpool currently has a Forward P/E ratio of 6.35. For comparison, its industry has an average Forward P/E of 11.77, which means Whirlpool is trading at a discount to the group.

Meanwhile, WHR's PEG ratio is currently 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Household Appliances was holding an average PEG ratio of 4.22 at yesterday's closing price.

The Household Appliances industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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