Bear of the Day: Whirlpool (WHR)

Whirlpool (WHR) is prone to global market and foreign exchange risks as nearly half of its operations are international in nature. Also, high customer concentration and growing competition are major threats to the company.

In addition, inventories are on the rise due to the weak economy, which is forcing the company to reduce its product prices and, therefore, its profit margins. In the most recent quarter, Whirlpool just managed to post earnings in-line with the Zacks Consensus Estimate.

The company is also facing a deteriorating balance sheet with an increased debt balance but reduced cash balance. These factors have led us to provide an Underperform recommendation on Whirlpool with a target price of $68.

WHIRLPOOL CORP (WHR): Free Stock Analysis Report

About Zacks Investment Research 1767 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.


*