Buy These 2 Stocks as the Demand for Home Appliances Remains Strong

NYSE: WHR | Whirlpool Corp. News, Ratings, and Charts

WHR – Despite significant progress on the vaccination front, many people are still unwilling to fully resume outdoor activities. So, for now, many people continue to focus on improving their living spaces, including the upgrade of home appliances. Rising disposable income has put more consumers in a position to now purchase smart appliances. We think this trend bodes well for Whirlpool (WHR) and Conn (CONN). Let’s discuss.

The dramatic pandemic-induced shift in lifestyles and consumer preferences has led to much greater home improvement activity by people. Home improvement projects to re-organize and repurpose existing living spaces has now become de rigueur. And even though more than 50% American adults are now fully vaccinated against COVID-19, people are still spending more time indoors and are redecorating their spaces according to their needs.

This is driving a substantial surge in demand for home appliances. In fact, the global home appliance market size is expected to grow at a 6.1% CAGR over the next five years to hit $932.4 million by the end of 2026.

Rising disposable income and  rapid urbanization should further accelerate the growth of the home appliance industry. As consumers continue to choose home appliances that are equipped with advanced technological features and modern looks, we think companies such as Whirlpool Corporation (WHR) and Conn’s, Inc. (CONN), which are investing heavily in developing innovative products, are uniquely positioned to benefit. So, it could be wise to bet on these stocks now.

Whirlpool Corporation (WHR)

WHR is the world’s leading kitchen and laundry appliance company. Its principal products include refrigerators, freezers, laundry appliances and related laundry accessories, cooking and other small domestic appliances, dishwasher appliances and related accessories. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and other major brand names in nearly every country in  the world.

Last month, WHR began its plan to invest $15 million into its factory in Tulsa, Oklahoma. The Initiative should further strengthen its U.S. manufacturing capabilities and bring even more innovative products, thereby leading to increased sales.

WHR’s net sales grew 23.8% year-over-year to $5.36 billion in the first  quarter ended March 31, 2021. The company’s operating profit increased 135% year-over-year and came in at $618 million. WHR  reported $433 million in net earnings during this period, representing an 181.2% increase year-over-year. Its EPS increased 178% year-over-year to $0.61 for the period.

Analysts expect WHR’s revenue to increase 41.5% year-over-year to $5.05 billion in the current quarter ending June 2021. The company’s EPS is expected to increase 175.8% year-over-year to $5.93 in the current year. The stock has gained 92.2% over the past year.

WHR’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

The stock is rated an A for Growth and Momentum and a B for Value. Within the A-rated Home Improvement & Goods industry, it is ranked #17 of 63 stocks. To see additional POWR Ratings for Sentiment, Stability and Quality for WHR, Click here.

Conn’s, Inc. (CONN)

CONN is a specialty retailer of durable consumer goods and related services. It operates through two segments, Retail and Credit. The company’s stores offer furniture and mattresses, accessories for the living room, and home appliances that include refrigerators, freezers, and washers. In addition, it  provides consumer electronics and home office products that include computers, printers, and accessories.

Last month, CONN expanded into the Ocala, Florida market by opening a new Conn’s HomePlus showroom that showcases a variety of furniture, mattresses, top-of-the-line appliances, consumer electronics and home office products. Its entry into the Ocala market should drive sales growth.

In its  fiscal fourth quarter, ended January 31,CONN’s total costs decreased 12.6% year-over-year to $340.50 million. The company’s net income increased 397.6% year-over-year to $25.13 million. It reported an EPS of $0.85 for the quarter, compared to an EPS of $0.17 in the prior-year quarter.

Analysts expect CONN’s EPS to increase 115.9% year-over-year to $0.3 in the current quarter, ended April 2021. Its revenue is expected to increase 7.6% year-over-year to $1.42 billion in its  fiscal year 2023. The stock has gained 233.3% over the past year.

It is no surprise that CONN has an overall grade of B, which equates to Buy in our POWR ratings system. It also has an A grade for Momentum, and a B grade for Value and Quality. Of 36 stocks in the B-rated Specialty Retailers industry, it is ranked #7.

In total, we rate CONN on eight different levels. Beyond what we’ve stated above, we have also given CONN grades for Stability, Sentiment and Value. Get all the CONN ratings here.

Click here to checkout our Retail Industry Report for 2021

WHR shares were trading at $237.32 per share on Wednesday afternoon, down $0.51 (-0.21%). Year-to-date, WHR has gained 33.12%, versus a 12.66% rise in the benchmark S&P 500 index during the same period.

About the Author: Samiksha Agarwal

Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
WHRGet RatingGet RatingGet Rating
CONNGet RatingGet RatingGet Rating

Most Popular Stories on

Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Read More Stories

More Whirlpool Corp. (WHR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All WHR News