Whirlpool Corp (WHR-N)

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.

JPMorgan just upgraded it to a top pick. She doesn't doesn't know why it's a hated stock. She finds it cute. They have pricing power even with steel costs rising while their last report was impressive. They are buying back $2 billion more shares. They boast a high-single digit PE. For all these reasons, she really likes it.

It depends on the continued DIY trade by homeowners and the hot housing market. JPMorgan just downgraded it.