Personal Finance

Here's Why Whirlpool Corporation Was Sent Through the Spin Cycle

Woman reading financial newspaper.
Woman reading financial newspaper.

Image source: Getty Images.

Now what

While this may not have been the result that investors were looking for, Whirlpool also offered a key bit of insight that should calm the nerves of long-term investors. As stated in the press release by CEO Jeff Fettig:

Our long-term value creation framework is unchanged, as we build upon the strong foundation we have in place: our industry-leading brand portfolio and robust product innovation pipeline supported by our best cost global operating platform. We are confident that our plans, along with disciplined operational execution by our people and our balanced capital allocation strategy, will continue to deliver record financial results for our shareholders.

Long story short, Whirlpool's growth strategy isn't impacted by Britain's move to leave the EU, or by the sudden devaluation of Britain's currency. This means Whirlpool can continue to focus on higher growth opportunities, such as Asia, the Middle East, and Africa, as well as stick to its innovative roots in North America to drive sales.

Additionally, Whirlpool's exceptional cash-flow generation gives it the flexibility to sprinkle in acquisitions and a very healthy shareholder yield. After today's tumble, Whirlpool is, once again, an attractive stock for value investors to consider.

10 stocks we like better than Whirlpool

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Whirlpool wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of January 4, 2017

Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More