Core Viewpoint - Bank of America Securities analyst Rafe Jadrosich upgraded Whirlpool Corporation from Underperform to Neutral, raising the price forecast from $68 to $94 due to improved North American margin prospects and tariff-related benefits [1]. Group 1: Financial Estimates - The analyst increased 2025 earnings estimates to $8.56 from $8.35 and 2026 EPS estimates to $10.33 from $9.39, benefiting from new appliance-related steel tariffs [1]. - Fiscal year 2027 earnings per share were raised to $10.73 from $9.96 [6]. Group 2: Tariff Impact - Whirlpool is well positioned to benefit from new Section 232 tariffs, which will impose a 50% duty on the steel content of imported home appliances starting June 23, as 80% of its U.S. sales are domestically produced and 96% of its steel is U.S.-sourced [3]. - Competitors relying on imports for over half of their U.S. sales, particularly from China and Korea, will face increased costs, reducing their previous cost advantage [4]. Group 3: Competitive Advantage - The tariffs could force competitors to raise wholesale appliance prices by 3–5%, or approximately $15–$20 per unit, potentially giving Whirlpool a competitive edge [5]. - A price increase of $15–$20 on half of Whirlpool's North America volume could boost EBIT margins by 150–200 basis points and raise profits by 20–30% [5]. - With appliance manufacturing being a low-margin business, rivals are expected to pass on costs, allowing Whirlpool to gain market share or expand margins [6].

Core Viewpoint - The article discusses the performance of Whirlpool Corporation (NYSE: WHR) stock, which has fluctuated around the $100 level since the last bullish article was published nearly a year ago, with the current trading price being noted [1]. Summary by Relevant Sections - The stock was trading around $102 per share in the previous analysis, and it has since experienced volatility, trading both above and below the $100 mark [1]. - The investment strategy highlighted focuses on strategic buying opportunities, particularly in dividend and value stocks, which has led to a strong reputation on platforms like Tipranks.com and Seeking Alpha [1].

Group 1: Guggenheim Strategic Opportunities Fund - The fund has maintained monthly distributions for over a decade but has not covered its net investment income for the last seven years, leading to a decline in its net asset value (NAV) [2][3] - The fund's NAV currently stands at $11.50, and it has increased leverage to boost investment income, which is not a sustainable strategy [3][4] - The market is pricing the fund at a 28.5% premium to its NAV, indicating a potential mispricing [4] Group 2: Whirlpool - Whirlpool is positioned to benefit from U.S. tariffs and the administration's support for American manufacturing, particularly against Asian competitors [5] - The company faces challenges from a weak housing market, which affects discretionary appliance sales, crucial for its earnings [6] - Whirlpool's annual dividend consumes $390 million in cash, while expected free cash flow (FCF) for 2025 is projected between $500 million and $600 million [9] - The company has $1.85 billion in debt maturing in 2025 and plans to refinance $700 million, but this could be jeopardized if earnings guidance is missed [10] Group 3: UPS - UPS's dividend may be at risk, and cutting it could enhance the company's investment potential [11] - The company initially estimated generating $5.7 billion in FCF while paying $5.5 billion in dividends, but guidance has become uncertain due to economic impacts from tariffs [11][12] - UPS is intentionally reducing lower-margin Amazon delivery volumes, which could further affect its financial outlook [12] - A dividend cut could allow UPS to allocate more earnings towards investments that improve return on equity (RoE) [13][15]

Company Performance - Whirlpool's stock closed at $81.72, reflecting a +0.43% change from the previous day, outperforming the S&P 500's gain of 0.01% [1] - Over the past month, Whirlpool's stock has increased by 6.17%, which is slightly below the Consumer Discretionary sector's gain of 6.65% and above the S&P 500's gain of 5.2% [1] Upcoming Financial Results - Analysts expect Whirlpool to report earnings of $1.73 per share, indicating a year-over-year decline of 27.62% [2] - The Zacks Consensus Estimate for revenue is projected at $3.84 billion, down 3.8% from the previous year [2] Full Year Projections - For the full year, earnings are projected at $8.61 per share and revenue at $15.5 billion, reflecting declines of -29.48% and -6.7% respectively from the prior year [3] - Recent changes in analyst estimates suggest a shifting business landscape, with positive revisions indicating optimism about Whirlpool's profitability [3] Valuation Metrics - Whirlpool has a Forward P/E ratio of 9.45, which is consistent with the industry average [6] - The Household Appliances industry, part of the Consumer Discretionary sector, currently holds a Zacks Industry Rank of 224, placing it in the bottom 9% of over 250 industries [6] Zacks Rank System - Whirlpool is currently rated as Zacks Rank 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The Zacks Rank system has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5]

Company Performance - Whirlpool's stock closed at $78.62, reflecting a daily increase of 0.61%, outperforming the S&P 500's gain of 0.4% [1] - Over the past month, Whirlpool shares have appreciated by 2.44%, which is lower than the Consumer Discretionary sector's gain of 8.94% and the S&P 500's gain of 6.69% [1] Earnings Projections - The upcoming earnings release is projected to show earnings of $1.73 per share, indicating a year-over-year decline of 27.62% [2] - Revenue for the same quarter is estimated at $3.84 billion, reflecting a 3.8% decrease from the previous year [2] Full Year Estimates - For the full year, earnings are projected at $8.61 per share and revenue at $15.5 billion, representing declines of 29.48% and 6.7% respectively from the prior year [3] - Recent changes in analyst estimates indicate a dynamic business trend, with positive revisions suggesting optimism regarding the company's profitability [3] Zacks Rank and Valuation - Whirlpool currently holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The Forward P/E ratio for Whirlpool is 9.08, which aligns with the industry's average Forward P/E of 9.08 [6] Industry Context - The Household Appliances industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 223, placing it in the bottom 10% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Whirlpool Corporation is enhancing customer experience through continuous innovations aimed at simplifying daily tasks [1][5] - The company has launched the Spin&Load Rack, a 360° spinning dishwasher rack designed for ease of use in kitchens, developed in collaboration with the United Spinal Association [2][3] Product Details - The Spin&Load Rack features a highly inclusive design that allows easy access to all areas of the lower dishwasher rack, making loading and unloading more efficient [3] - This new accessory is compatible with all 24" Whirlpool dishwashers manufactured after 2018 and is priced at $149.99, available for purchase next month [4] Market Position and Challenges - Whirlpool has faced a decline in share price, with a 17.4% drop over the past three months, compared to a 16.7% decline in the industry [6] - The company is experiencing global demand softness and unfavorable price/mix, compounded by a challenging macroeconomic environment, including inflation and currency fluctuations [7] Future Outlook - Management anticipates similar market dynamics for the second quarter of 2025 as previously experienced, with increased competition and elevated marketing and technology investments potentially impacting margins [8]

Core Insights - JennAir showcased its commitment to innovation and luxury at KBIS 2025 with a multisensory installation and new product offerings [1][2] - The brand's partnership with Nature Squared introduces unique designs using reclaimed natural materials, enhancing the aesthetic appeal of kitchen appliances [2][3] Product Offerings - **Nature Squared Panels**: The Elements Collection features ten panel designs inlaid with reclaimed egg and seashells, starting at a price of $12,000 [3] - **Wine Columns**: JennAir's first Wine Columns offer a luxury preservation experience with features like an Obsidian black interior and vibration-reducing design, priced at $7,499 and $7,899 for different models [4][7] - **Induction Professional-Style Ranges**: New ranges are available in RISE™ and NOIR™ design expressions, featuring advanced cooking technology and customizable options, with prices ranging from $8,099 to $15,299 [5][13] - **SlimTech™ Insulation Technology**: A new Column Refrigerator utilizes SlimTech™ Insulation, offering a sleek design and customizable panel options, priced at $8,599 [8] - **Wall Ovens**: The reimagined Wall Ovens include a MultiMode® True Convection system and an upgraded LCD display, enhancing user experience [9] Brand Philosophy - JennAir aims to redefine luxury kitchen appliances by combining performance with artistry, pushing the boundaries of traditional design [2][11] - The brand's history of innovation is highlighted by its founder's legacy of transforming kitchen concepts, continuing to challenge norms in the luxury appliance market [11] Company Background - JennAir is part of Whirlpool Corporation, a leading home appliance manufacturer with approximately $17 billion in annual sales and a strong presence in the Americas [12]

Core Insights - Whirlpool brand has launched the Spin&Load Rack, a lower-level dishwasher rack designed for inclusivity, allowing easier access for individuals with disabilities [1][2][3] - The product was developed in collaboration with the United Spinal Association and Whirlpool's employee resource group, AVID, emphasizing the importance of including voices from the disability community throughout the design process [3][4] - Spin&Load Rack is compatible with all 24" Whirlpool Corporation dishwashers manufactured after 2018 and will be available for purchase in June 2025 for $149.99 [5][6] Product Features - The Spin&Load Rack features a 360-degree spinning design, enhancing accessibility and reducing the need for users to reach or reposition themselves while loading and unloading dishes [2][4] - The product includes simplified packaging for easy unboxing, designed to be opened with one hand [2][4] Market Position - Whirlpool Corporation is positioned as a leading home appliance company, with a focus on human-centered innovation and inclusivity in product design [7] - In 2024, the company reported approximately $17 billion in annual sales, with a significant portion generated in the Americas [7]

Group 1: Freeport-McMoran - Freeport-McMoran dominates the domestic copper market, providing 70% of the U.S. refined copper production, while the U.S. imports 45% of its refined copper consumption [2][5] - The U.S. Chamber of Commerce supports including copper as a critical metal eligible for tax credits, advocating for increased domestic minerals and metals production [3] - Freeport-McMoran is well-positioned to meet domestic demand with potential projects in Arizona and initiatives to extract copper from existing stockpiles [4] - The threat of tariffs on copper imports has led to a 13% premium for U.S. copper, potentially resulting in an $800 million financial benefit for Freeport if maintained [5][7] Group 2: Whirlpool - Whirlpool faces challenges due to high interest rates affecting the housing market, which in turn impacts discretionary appliance purchases [8][9] - The company has $4.8 billion in long-term debt, and its forecast for free cash flow is uncertain, raising questions about the sustainability of its $380 million dividend [9] - Management believes that closing loopholes allowing Asian competitors to avoid tariffs could significantly improve Whirlpool's competitive position, potentially resulting in a $70 cost disadvantage per product [10][11] Group 3: Cheniere Energy - Cheniere Energy benefits from the resumption of LNG export approvals under the current administration, contrasting with the previous pause [13] - The company is the largest LNG producer in the U.S., owning significant stakes in major LNG terminals and continuing to invest in capacity expansion [14][15] - The business model focuses on purchasing natural gas domestically and processing it into LNG for global export, aligning with the administration's push for increased LNG exports [15] Group 4: Overall Market Impact - The current administration's tariff policies aim to enhance the competitive positioning of U.S. companies, with a focus on copper, appliance manufacturing, and LNG exports [16]

Summary of Whirlpool Corporation FY Conference Call (May 20, 2025) Company Overview - **Company**: Whirlpool Corporation (WHR) - **Industry**: Home Appliances Key Points Demand Trends and Guidance - The company reiterated its 2025 guidance, expecting flat North American shipment growth, consistent with industry trends observed year-to-date [3][4] - The industry remains heavily focused on replacement sales, with no significant catalysts expected to drive growth [4][6] - The company anticipates potential volume growth in the latter half of the year due to favorable tariff and trade conditions, as it produces 80% of its products domestically [5][18] Consumer Sentiment and Market Dynamics - Consumer sentiment is currently low, impacting discretionary purchases, but the majority of consumers are driven by necessity to replace broken appliances [9][10] - The housing market's sluggishness, particularly in existing home sales, continues to constrain the discretionary segment of the appliance market [6][7] Tariff Impact - Recent tariff adjustments, particularly the reduction of China tariffs from 45% to 30%, are expected to lower cost impacts for Whirlpool, potentially allowing for margin improvements [12][15] - The company is positioned to gain market share as competitors face higher costs due to tariffs on imported products [18][19] Competitive Landscape - Whirlpool's market share has remained relatively flat, but the company expects to gain share in the latter half of the year through new product launches [17][19] - The competitive environment has seen increased promotional spending, but Whirlpool has been cautious, focusing on maintaining pricing discipline [19][20] Margin Outlook - Current guidance for North American margins is at 7.5%, with a long-term goal of 11-12% by 2026 [23][24] - The company aims to improve margins through cost reduction initiatives, disciplined promotional strategies, and increased market share [25][26] Marketing and Technology Investments - Marketing and technology spending has been a headwind for margins, but the company is nearing stabilization in these costs [29][30] - Investments in brand health and direct-to-consumer platforms are expected to yield long-term benefits [30][31] Debt Management - Whirlpool plans to reduce its debt levels significantly, targeting a mid-three times leverage ratio by the end of the year [32][33] - The company is on track to pay down $700 million in debt this year, aided by proceeds from the sale of its India business [33][35] Future Opportunities - The company is focusing on a comprehensive refresh of its KitchenAid product line, which is expected to enhance its competitive position in the premium segment [39][40] - Whirlpool aims to capture market share across all price points, leveraging its domestic production advantage in the current tariff environment [38][39] Additional Insights - The company is actively evaluating various transaction forms for the sale of its India business, which is expected to be completed within the year [33][35] - The overall promotional landscape is anticipated to evolve as the market adjusts to the tariff environment and consumer behavior changes [20][21]