From Nasdaq:

Despite gaining double-digit numbers in December, Whirlpool’s shares dropped by 10.1% in January, due to market sentiment regarding interest rate-sensitive stocks. The U.S. housing market greatly impacts Whirlpool’s profit margins, with North America being its most profitable region. Due to its exposure to the U.S. housing market, Whirlpool’s sales and margins have been negatively impacted by the current interest rate cycle. Management’s 2024 guidance states flat sales and an ongoing EBIT margin of 6.8%, similar to 2023, due to the freeze of existing home sales caused by a rapid increase in U.S. mortgage rates in 2023.

Whirlpool anticipates challenging conditions in the near future. Despite this, the company is working to reduce costs and are preparing to combine its European business to a new company with an Arcelik subsidiary. Despite current challenges, Whirlpool may recover strongly in 2024, with a compelling valuation of less than 8 times forward estimated earnings, along with a dividend yield of 6.3%.



Read more: Why Shares in Whirlpool Tumbled in January