Chart of the Day: Should You Worry About Whirlpool?
Not to be a Debbie Downer. But it hasn’t been ALL good news on the earnings front. Exhibit A is Whirlpool Corp.(WHR). So, how much should you worry?
Let’s start with the details. Whirlpool warned of a “recession-level industry decline” for big-ticket consumer purchases like household appliances. It lost 56 cents per share in Q1, missing the average forecast for 38 cents in earnings by a country mile. Plus, it cut its full-year profit forecast range in half – and suspended its dividend.
Result? Whirlpool stock slid 11.9% to the lowest level since December 2011, as you can see in my MoneyShow Chart of the Day.
(To get more articles and podcasts from MoneyShow, subscribe to our Top Pros’ Top Picks newsletter here.)
Whirlpool Corp. (WHR)
Source: TradingView
Not great. Shares of global competitor AB Electrolux(ELUXY) also trade like death warmed over, recently slumping to a 17-year low amid lousy North American market sales.
Worth noting: Larry McDonald also highlighted the weak performance of housing-market-sensitive stocks like Home Depot Inc.(HD) in this week’s MoneyShow MoneyMasters Podcast. It’s down 5.4% year-to-date, while competitor Lowe’s Cos.(LOW) is down 2.2%. The State Street SPDR S&P 500 ETF Trust(SPY) is up 5.9% in the same timeframe.
So, getting back to the original question: Should you worry about this action? Sell stocks broadly and move to cash because some appliance makers are hurting bad…and home improvement retailers look “meh?” I wouldn’t go THAT far.
Appliance maker LG Electronics is trading just fine in South Korea. Meanwhile, Samsung Electronics Co. Ltd. is going vertical – though that’s because of its AI-related operations, not appliance demand! Plus, we’re seeing companies with commercial construction exposure – especially data center-related operations – doing great. Caterpillar Inc.(CAT)is Exhibit A there.
That means this is more of a “some winners, some losers” situation. Not a reason to run for the hills.
