Whirlpool & Meritage Homes Renew Deal to Bolster Growth

Whirlpool CorporationWHR took another step to reinforce its focus on strengthening ties with big-wigs in order to augment growth. The company renewed its four-year deal with the seventh-largest public homebuilder in the U.S., Meritage Homes Corporation MTH , with effect from Jun 1, 2016.

Per the renewed contract, Meritage Homes will continue to feature Whirlpool's Amana, Whirlpool, Maytag, KitchenAid and Jenn-Air brand appliances in its homes across the nation. Whirlpool remains pleased with its experience with Meritage Homes so far and is looking forward to offer leading energy-saving appliances to the homebuilder in the future.

Based in Scottsdale, Meritage constructs and sells nuclear-family homes, mainly for move-up, first-time, luxury and active adults. The company primarily operates across the Western, Southern and Southeastern parts of the U.S., and has constructed over 100,000 homes over a span of about 31 years.

We believe that the renewed contract will benefit both Whirlpool and Meritage Homes. On one hand, Whirlpool is likely to gain from Meritage Homes' geographic reach, efficiency and popularity. On the other hand, Whirlpool's industry leading products will propel growth at Meritage Homes by enhancing customer experience.

This is not the first time that Whirlpool has undertaken such a step. This leading home appliances producer has recently inked a deal with, Inc. AMZN to launch voice-activated home appliances. This feature will be accessible through Whirlpool's expertise on Alexa-enabled devices such as Echo and Echo Dot.

Alexa, developed by Amazon, an eCommerce giant, enables users to interact or control compatible devices by saying a wake word - a word to awaken Alexa and make it functional. This software will allow users to run smart home equipment with voice commands and simultaneously engage in various household chores.

Whirlpool has also launched its new Whirlpool Smart All-in-One Care Washer and Dryer Combo and the Zera Food Recycler. These product launches stand proof to the company's focus on enriching consumer experience via innovations, a key avenue for growth. In fact, Whirlpool's robust product pipeline, solid innovations and cost productivity initiatives helped it deliver record earnings for the fifth consecutive quarter in 2016, which was released last week.

Driven by these factors, the company has outperformed the Consumer Discretionary sector in the last one year. Evidently, Whirlpool's shares have grown 32.2% in the last one year, compared to the sector's gain of 21.7%.

Whirlpool currently carries a Zacks Rank #3 (Hold). Another better-ranked stock in the consumer discretionary space is Masonite International Corporation DOOR , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Masonite International has a solid earnings surprise history and a Growth Style Score of "A."

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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.

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