Today's Unusual Social Activity Stock: Whirlpool (WHR)

Trade-Ideas LLC identified Whirlpool (WHR) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Whirlpool

(

WHR

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Whirlpool as such a stock due to the following factors:

  • WHR has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.94 mentions/day.
  • WHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $153.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on WHR:

Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The stock currently has a dividend yield of 2.2%. WHR has a PE ratio of 2. Currently there are 8 analysts that rate Whirlpool a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Whirlpool has been 907,700 shares per day over the past 30 days. Whirlpool has a market cap of $14.0 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.71 and a short float of 5.7% with 4.90 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Whirlpool as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, WHIRLPOOL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • WHIRLPOOL CORP's earnings per share declined by 19.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WHIRLPOOL CORP increased its bottom line by earning $9.82 versus $8.17 in the prior year. This year, the market expects an improvement in earnings ($14.60 versus $9.82).
  • WHR, with its decline in revenue, slightly underperformed the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that WHR's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

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