There seems to be a growing sentiment that the housing market is bottoming. It is starting to be incorporated into more and more 2012 prediction lists. If this indeed is the case, investors want to pick up Whirlpool (NYSE:WHR) now.
7 reasons to pick up WHR at $46 a share:
1. Numerous insiders have picked up new shares over the last two months.
2. It is selling at the bottom of its five year valuation range based on P/E, P/S, P/B and P/CF.
3. Whirlpool has a 4.3% dividend yield providing a floor under the stock.
4. The stock also appears to be in a bottoming process (See Chart)
5. Whirlpool is too cheap at 19% of sales and a forward PE of under 8.
6. WHR has a five projected PEG of just .62 which is a 35% discount to its five year average
7. The consensus analyst price target on Whirlpool is $60. S&P has a $58 price target on WHR.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in WHR over the next 72 hours.