Is Whirlpool an Inflation-Fighting Value Stock?
When Whirlpool (NYSE: WHR) announced guidance for the new year back in January, it spelled out a compelling argument for investors. Management said that even though household appliance sales have gotten a boost during the pandemic, greater use of those appliances while employees worked from home would create a strong replacement cycle over the next few years.
The company said that it expects full-year earnings per share (EPS) of $27 to $29. In addition, it guided to 5% to 6% organic revenue growth for the year. Whirlpool's stock is down 27% this year as of Thursday's close, likely due tin part o inflation fears. But the company's guidance assumes inflation will persist. To offset higher costs, Whirlpool will increase prices and introduce new products to the market.
Whirlpool's stock is trading around its lowest forward price-to-earnings (P/E) ratio in the past 10 years, other than the pandemic sell-off in 2020. If the company can hit its guidance for 2022, the stock could be a bargain.
Source Fool.com
