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Whirlpool Corporation - AI Stock Analysis

Analysis generated May 26, 2024

Whirlpool Corporation is a multi-national manufacturer and marketer of home appliances. Headquartered in Benton Harbor, Michigan, Whirlpool has been a dominant player in the appliance industry for over a century. The company's product portfolio includes refrigerators, washing machines, air conditioners, and other household necessities. Whirlpool's brands like KitchenAid, Maytag, and Amana provide comprehensive solutions to household needs, contributing to its global reputation for reliability and innovation.

Fundamental Analysis

In the latest quarter, Whirlpool Corporation reported revenue of $4.15 billion, which represents a significant decrease of 19.76% compared to the previous quarter. Compared to the same quarter last year, there's also a decline but at a smaller magnitude of 4.57%. The notable drop in revenue indicates potential operational issues or weak market demand.

Net income for the last quarter stands at $259 million, which is a substantial decrease of 152.75% compared to the previous quarter. Compared to the same quarter last year, this is a decrease of 44.69%, which is still a matter of concern but slightly less alarming. This sharp drop in net income could reflect increased costs or lower operating efficiency.

EBITDA for the last quarter was reported at $4 million, which is a drastic decrease of 100.81% compared to the previous quarter and a 107.55% decrease compared to the same quarter last year. These figures underscore major performance issues that need prompt addressing.

On a more positive note, the current Price-to-Earnings (P/E) ratio is 11.9. A lower P/E ratio could indicate that the stock is undervalued, presenting a bullish outlook for potential investors. However, the fundamental data suggest caution due to the sharp declines in revenue, net income, and EBITDA.

Technical Analysis

The current stock price of Whirlpool Corporation is $86.52, which is a 6.80% decrease compared to a month ago. Over the past year, the stock has seen a more significant decline of 31.31%, raising concerns for long-term investors. These indicators position the trend as bearish.

The Simple Moving Average for 10 days (SMA10) is currently at 88.90, slightly lower than the previous SMA10 of 89.45. This suggests a potential downward trend in price movement. The RSI (Relative Strength Index) stands at 63.1, indicating a neutral condition. While not in overbought or oversold territory, the broader bearish trend appears discouraging.

Alternative Data Analysis

Job Postings and Employee Sentiment: Whirlpool Corporation has approximately 212 open positions, down by 48% over the last couple of months. This reduction in job postings might indicate cost-cutting measures, which could hinder the company's growth opportunities. Employee sentiment remains neutral, neither indicating significant improvement nor deterioration.

Customer Acquisition and Engagement: Whirlpool Corporation's webpage has seen an estimated 93,000 visitors, down by 32% over the last couple of months. This decline in online traffic could signal a loss of customer interest or market share. Meanwhile, social media engagement shows little to no change, with 17,000 followers on Instagram and 33,000 followers on Twitter. Stagnant social media growth further emphasizes potential challenges in customer engagement.

AltIndex's AI score for Whirlpool Corporation is 49, indicating a hold signal. This score combines fundamental, technical, and alternative data to provide a comprehensive stock assessment.

Conclusion and Recommendation

Considering Whirlpool Corporation's financial performance, technical indicators, and alternative data, the stock appears to be facing significant challenges. The substantial declines in revenue, net income, and EBITDA are alarming and suggest operational inefficiencies or reduced market demand. The bearish trend in stock price and declining customer engagement add to potential investors’ concerns. The neutral employee sentiment and reduced job postings hint at potential internal restructuring or cost-cutting measures.

Although the current P/E ratio of 11.9 might signal undervaluation, the overall negative trends imply a cautious approach. Thus, based on the gathered data, it would be prudent to recommend holding the stock rather than buying or selling it actively. Potential investors should closely monitor upcoming quarterly reports and market conditions before making investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.