Whirlpool: 6.5% Yielding Strong Buy

Summary

• Whirlpool offers a 6.5% yield, 24% CAGR potential through 2026, and is 35% historically undervalued, making it an attractive investment despite its high volatility.
• The company is expected to recover 67% EPS by 2029, driven by economic growth, tax cuts, and AI economic boosts, leading to a 133% return potential.
• WHR's speculative nature stems from its cyclical industry and high volatility, but its strong dividend history and improving balance sheet provide confidence.
• Political risks, such as potential tariff wars, could impact WHR's performance, but its current fundamentals justify a significant upside in the next five years.

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This article was co-produced with Dividend Sensei.

Bottom-Line Upfront

Reasons To Like Whirlpool (NYSE:WHR)

• Blue-Chip Quality (Safety score 79%)
• Near Anti-Bubble valuation (8.7X 2025 earnings)
• 6.5% yield
• 26% CAGR total return potential through 2026.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WHR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author's Note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: written and distributed to assist in research while providing a forum for second-level thinking.