Whirlpool Corp (WHR)

Down 24% the past 3 months. It mystifies him.  Keeps going down.

It reports Monday. Shares could fly if tariffs on steel have the effect of allowing WHR to sell their washers and dryers without the dumping of America's so-called trading partners.

Has slumped a long time. WHR is the only real American manufacturer in this industry. However, peers now face serious steel tariffs, so WHR is in the driver's seat, could benefit. Rallied 5% today.

Chart shows a downtrend -- both peaks and troughs are going lower. Also, he's assuming it's below its 200-day MA. Going back to June 2024, there's some support around $90. If it bounced off, may be the end of the downtrend. But until that happens, at best it's consolidating with a big question mark.

He didn't like their quarter at all. It's in the penalty box and has had a slight bounce.

Yes. But he didn't like their international deal. A cheap stock. It's in the same boat as Best Buy.

Has been hurt by consumers who won't buy big-ticket items, and by weak homebuilding stats

WHR has largely been on a downtrend since mid-2021, however, since late 2023, its price has been trending up. It pays a nice dividend of 6%, but sales have been largely flat over the past several years, and its debt levels have crept up (3.8X net debt/EBITDA). Its free cash flows are OK, but it is drawing from its cash balance to pay down debt and service dividends. As a result, its equity balance has been declining over the years. It trades at a cheap valuation, but this is likely reflecting its weakening results. As an income name, we think it is OK, but we are not overly excited by the name here.
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Stay-at-home impact wore off. Mismanagement plus bad luck. Inexpensive 7x earnings, speculative buying opportunity if economy does well. Don't bet the farm. It will either be a win or a loss. Great dividend yield of 6.5%. Alluring, but 80% payout ratio, so be careful. If not working out, hit the exit quickly.

Bought this last May. A pandemic play that overcorrected after the pandemic as if the consumer was going to die. It didn't. It's down 20% recently on weak guidance. But she added shares today. Trades at 7x PE, pays a 7% dividend, makes $16 EPS to cover a $7 dividend, and their inventory is returning to normal a lot faster than they expected. Will buy more tranches if this declines more.