#2 - Whirlpool Corporation (NYSE:WHIP)
Whirlpool Corporation (NYSE: WHP) - The problem: Tariffs work both ways
This could easily be titled “With friends like these … “. Whirlpool Corporation was one of the original beneficiaries of the Trump administration’s tariffs on Korean-made washers and dryers. For many years, the company had been accusing Korean manufacturers Samsung and LG of “dumping”, that is, flooding the United States with less expensive washers and dryers. Whirlpool found a friendly ear in the Trump administration who put the tariffs into effect. However, any boost they received was short lived. In the aftermath of the administration’s tariffs on steel and aluminum, Whirlpool is feeling the repercussions in higher material costs as consumers still desire stainless steel appliances.
In its most recent earnings statement, Whirlpool cited “input costs” would be between $50-100 million above their forecasts, an announcement which has greased the slide of its stock, which is down 18 percent year-to-date. While the company may realize some benefit from the increased price of washers and dryers (up 17%) most of which has come at the expense of competitive models from overseas, it remains to be seen if Whirlpool can gain enough traction to offset their rising material costs.
WPL is currently trading at around $125 per share, down from its 52-week high of $190.73.
About
- Current Price
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- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
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