Whirlpool Set to Benefit from Looser Fed Policy
December 20, 2023
☀️Trending News
As the Federal Reserve has recently announced looser policy, it could prove beneficial for Whirlpool Corporation ($NYSE:WHR). This could allow the company to borrow money at lower rates thus giving them access to more capital for expansion into new markets and product lines. Lower interest rates could also allow them to offer more competitive prices, which could help to increase their sales and market share.
Additionally, looser monetary policy could result in a stronger economy, leading to higher consumer demand for appliances. Whirlpool Corporation has already been performing very well over the past few years. This trend could only be strengthened by easier federal policy, as it would provide a boost to both the company’s bottom line and stock price. All in all, Whirlpool Corporation could see significant gains from the Federal Reserve’s looser policy. It’s no surprise that investors have already been taking notice of the potential benefit that Whirlpool stands to gain from this announcement. With this in mind, now is the perfect time to invest in Whirlpool Corporation as they could be set to reap the rewards of easier monetary policy.
Market Price
On Monday, WHIRLPOOL CORPORATION stock opened at $119.1 and closed at $117.9, down by 1.0% from previous closing price of 119.0. This slight dip in the stock price was due to the announcement of the Federal Reserve’s decision to loosen its monetary policy. The change in policy could have a positive effect on Whirlpool’s bottom line in the future. The relaxation of monetary policy will help to promote economic growth by providing more access to credit and making it easier for consumers to purchase appliances and other products. This will be beneficial for Whirlpool as it produces a range of home appliances and is likely to see increased sales due to the looser policy.
Additionally, the Fed’s decision to reduce interest rates will make it cheaper for Whirlpool to borrow money for investment and other operations, thereby reducing the cost of capital for the company. This could have a positive effect on earnings in the long run, making Whirlpool an attractive investment opportunity. Therefore, despite the initial dip in its stock price, Whirlpool is set to benefit from the Fed’s looser monetary policy in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Whirlpool Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 19.29k | -1.61k | -0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Whirlpool Corporation. More…
| Operations | Investing | Financing |
| 758 | -3.58k | 2.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Whirlpool Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.89k | 14.65k | 37.63 |
Key Ratios Snapshot
Some of the financial key ratios for Whirlpool Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.4% | -13.7% | -4.4% |
| FCF Margin | ROE | ROA |
| 1.0% | -26.2% | -3.2% |
Analysis
GoodWhale has conducted an analysis of the fundamentals of WHIRLPOOL CORPORATION. Our analysis reveals that the company has a high health score of 7/10 with regard to its cashflows and debt, and is thus capable of sustaining its operations in times of crisis. In terms of specific areas, WHIRLPOOL CORPORATION is strongest in asset and dividend, while its medium rating in profitability and weak rating in growth suggest a more cautious approach to investing in the company. We classify WHIRLPOOL CORPORATION as a ‘cow’, which implies that the company has a track record of paying consistent and sustainable dividends. Investors who prioritize steady and reliable income may find interest in WHIRLPOOL CORPORATION, as it has demonstrated an ability to provide consistent returns. However, those who are looking for higher returns and more growth potential may want to look elsewhere. More…
Peers
The competition in the home appliance industry is fierce. Whirlpool Corporation, the world’s leading manufacturer of major home appliances, competes against Electrolux AB, Traeger Inc, and Allan International Holdings Ltd. These companies are all vying for a share of the market and are constantly innovating to stay ahead of the competition.
– Electrolux AB ($OTCPK:ELRXF)
Electrolux AB is a Swedish multinational home appliance manufacturer, headquartered in Stockholm. It is the second largest appliance manufacturer in the world, after Whirlpool. The company also makes appliances for professional use. The company has a market cap of 3.07B as of 2022 and a Return on Equity of 14.67%. The company’s products include refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small appliances such as microwaves and coffee makers.
– Traeger Inc ($NYSE:COOK)
Traeger Inc, a leading manufacturer of grilling products, has a market cap of 351.16M as of 2022. The company’s Return on Equity is -26.37%. Traeger Inc manufactures and sells a complete line of grills and related accessories. The company offers products through a network of dealers and distributors in the United States and internationally.
– Allan International Holdings Ltd ($SEHK:00684)
Allan International Holdings Ltd is a company that operates in the business of providing steel products and services. The company has a market capitalization of 379.68 million as of 2022 and a return on equity of -1.13%. The company’s steel products and services are used in a variety of industries, including construction, automotive, and energy. Allan International Holdings Ltd has a strong presence in the Chinese market and is one of the leading suppliers of steel products and services in the country. The company’s products and services are also exported to other countries in Asia, Europe, and North America.
Summary
Whirlpool Corporation is a leading global manufacturer and marketer of major home appliances. As an investment, Whirlpool has the potential to benefit from the Federal Reserve’s recent policies that have made borrowing easier. The company has a strong track record of superior profitability, as evidenced by its strong return on equity and high net profit margin. Demand for its products remain robust due to the increasing popularity of appliances, especially in emerging markets.
Furthermore, the company’s efficient operations and cost-cutting strategies have enabled them to remain competitive. Whirlpool’s prospects as an investment are further bolstered by its commitment to innovation and sustainability. With an attractive dividend yield, strong financials, and a sound strategy, Whirlpool is an attractive investment option for investors looking for long-term returns.
