10 Best Consumer Electronics Stocks to Buy

05. Whirlpool Corporation (NYSE:WHR)

Number of Hedge Fund Holders: 24

Whirlpool Corporation (NYSE:WHR), a leading manufacturer of home appliances, has demonstrated resilience despite a challenging macroeconomic environment, as highlighted in its Q2 2024 earnings report. The company has successfully managed to drive sequential global margin expansion, showcasing its strong operational capabilities. Whirlpool reported an ongoing EBIT margin of 5.3%, reflecting a 100 basis point improvement compared to the previous quarter, a positive sign of the company’s margin recovery efforts.

A key driver behind this margin expansion has been Whirlpool Corporation (NYSE:WHR) strategic pricing actions in its North American market. These initiatives, announced earlier in the year, resulted in improved sell-through trends and helped mitigate the impact of weak discretionary demand caused by elevated mortgage rates and sluggish home sales. The company’s ability to maintain its market share and generate positive price mix in June 2024 is a testament to the strength of its brand portfolio, which includes well-known names like Whirlpool, Maytag, and KitchenAid.

Whirlpool Corporation (NYSE:WHR) international operations also performed well, particularly in Latin America and Asia, where the company continues to gain market share. These regions saw double-digit sales growth, contributing to the company’s overall financial stability. Additionally, Whirlpool’s cost management efforts, including the completion of its organizational simplification, are on track to deliver $300 million to $400 million in savings for the year, further supporting margin expansion.

Looking ahead, Whirlpool Corporation (NYSE:WHR) has revised its full-year EBIT margin guidance to 6%, down from 6.8%, but remains confident in achieving a strong exit rate of approximately 7.5% in Q4 2024. The company expects to deliver $12 in ongoing earnings per share this year, supported by new product launches and continued strength in its international business. Whirlpool Corporation (NYSE:WHR) robust cash flow generation of $500 million, alongside its commitment to returning value to shareholders through dividends and debt reduction, makes it a compelling investment opportunity. As the housing market eventually recovers, Whirlpool Corporation (NYSE:WHR) is well-positioned to capitalize on the demand rebound, driven by its innovation and strong product pipeline.