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

Whirlpool (WHR) closed the most recent trading day at $157.63, moving -1.07% from the previous trading session. This move lagged the S&P 500's daily loss of 0.67%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.13%.

Heading into today, shares of the maker of Maytag, KitchenAid and other appliances had lost 7.83% over the past month, lagging the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.65% in that time.

Whirlpool will be looking to display strength as it nears its next earnings release. In that report, analysts expect Whirlpool to post earnings of $5.76 per share. This would mark a year-over-year decline of 13.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.27 billion, down 3.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.83 per share and revenue of $20.76 billion, which would represent changes of -14.14% and -5.56%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Whirlpool. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Whirlpool currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Whirlpool is currently trading at a Forward P/E ratio of 6.98. This valuation marks a discount compared to its industry's average Forward P/E of 12.4.

We can also see that WHR currently has a PEG ratio of 1.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Household Appliances industry currently had an average PEG ratio of 4.69 as of yesterday's close.

The Household Appliances industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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