Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Whirlpool Stock Gained 15% in November

By Demitri Kalogeropoulos - Dec 6, 2018 at 9:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors reacted to conflicting news about the appliance retailer's global sales trends.

What happened

Shares of home appliance specialist Whirlpool ( WHR -0.72% ) beat the market last month, posting a 15% increase compared to a 1.8% uptick in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally erased just a portion of the stock's recent losses, and Whirlpool remains lower by more than 25% so far in 2018.

A woman turns on a washer machine.

Image source: Getty Images.

So what

November's boost came as investors continued to digest Whirlpool's third-quarter report, which was released late in the previous month. That announcement showed steady sales in the core U.S. market, which surprised many who follow the stock given the ongoing liquidation of Sears, an important retailing partner. Specifically, revenue rose 5% in the U.S, which helped offset a sharp drop in Whirlpool's European segment.

Now what

CEO Marc Bitzer and his team announced a stepped-up restructuring plan aimed at getting Whirlpool's manufacturing commitment back in line with lower sales volumes in Europe. These moves won't be enough to immediately produce improved earnings results from the division, but investors will be watching for a rebound starting in 2019.

In the meantime, Whirlpool is targeting adjusted earnings per share of between $14.50 and $14.80 for 2018, or a bit more than its prior forecast range of between $14.20 and $14.80.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Whirlpool Corporation Stock Quote
Whirlpool Corporation
WHR
$227.95 (-0.72%) $-1.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
652%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/09/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.