Here's Why Whirlpool Surged 13% Today (and Why There Could Be More to Come)

When a stock is as unloved as Whirlpool (NYSE: WHR), a mere reiteration of full-year expectations in an earnings report can cause the stock to soar. That happened after the company released its third-quarter earnings after the close of trading on Wednesday evening. By 11 a.m. ET today, the stock was up 13%.Given the deterioration in the housing market and Whirlpool's trading environment through 2024, it was reasonable for investors to fear the worst going into the third-quarter earnings report. Still, the results were good enough, and management maintained its expectations for ongoing earnings before an interest and taxation (EBIT) margin of 6%, ongoing earnings per share of $12, and free cash flow (FCF) of $500 million. Hitting these numbers would put the stock at 9.3 times earnings and 12.3 times FCF, based on the current price. Those are good valuations for a company with sales that should improve when lower interest rates start stimulating the housing market and, in turn, demand for domestic appliances. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool