Whirlpool: Appliances Winner On Tariffs And Housing Market Upside

Alexandru Draghici
19 Followers
(14min)

Summary

  • Whirlpool stock is a buy due to its 70-year dividend history, decade-low trading price, and potential 15% ROI over 5-10 years if debt is managed.
  • The company benefits from tariffs in the short term due to its U.S. manufacturing, making it more competitive against imports.
  • Whirlpool's performance is tied to housing market dynamics, with new construction and discretionary spending being key sales drivers, supported by macroeconomic indicators.
  • Despite risks like high debt and intense competition, Whirlpool's strong brand and conservative valuation suggest a 15% return potential, including a 7% dividend yield.

Interior of home kitchen

Tony Anderson/DigitalVision via Getty Images

Investment Thesis

Whirlpool (NYSE:WHR) is a buy on consistent dividend payments for over 70 years and on trading at decade lows. If the company can manage its debt, it can offer a 15% return on investment over the next 5-10 years, driven

This article was written by

19 Followers
I am a data scientist in credit risk modelling by trade and a value investor in my spare time. I like to research companies to look for undervalued opportunities, seeking simple, stable businesses, where the past is likely to be a good indicator of future performance. I have been investing globally for 7 years and I am based in London.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of WHR either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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