Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) 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 1.90 mentions/day.
- WHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.2 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 1.5%. WHR has a PE ratio of 21.3. Currently there are 4 analysts that rate Whirlpool a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Whirlpool has been 865,700 shares per day over the past 30 days. Whirlpool has a market cap of $15.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 2.08 and a short float of 2.8% with 2.50 days to cover. Shares are up 3.8% year-to-date as of the close of trading on Tuesday.
rates Whirlpool as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.00% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WHIRLPOOL CORP has improved earnings per share by 19.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WHIRLPOOL CORP increased its bottom line by earning $10.24 versus $5.06 in the prior year. This year, the market expects an improvement in earnings ($11.01 versus $10.24).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Household Durables industry average. The net income increased by 17.3% when compared to the same quarter one year prior, going from $196.00 million to $230.00 million.
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Whirlpool Ratings Report.