Whirlpool's Worst May Be Over-Upside Opportunity Ahead

Whirlpool’s (NYSE: WHR) stock downtrend may not be over; however, the technical, fundamental, and market forces are aligning, suggesting downside is severely limited and the upside potential is robust.

The chart, whether it be daily, monthly, or weekly price action, reflects a market that is trending lower but extremely oversold and overextended, ready for a rebound underpinned by improving operational quality and sell-side interest. 

Whirlpool’s Market Is Deeply Oversold: Market Recovery Ahead

The chart action is worth noting, as the daily candlesticks reflect a recent catalyst. The catalyst was the revelation in 13F filings that David Tepper’s Appaloosa Management had significantly increased its stake, reflecting increased confidence in the position.

Appaloosa, known for its high-risk, high-reward strategy, increased its holdings by 5.5 million shares and is now a nearly 10% owner. While not entitled to principal shareholder status, the company now has significant influence over the business, which is expected to begin rebounding in fiscal 2026.

Returning to the chart, the catalyst resulted in a 6% increase in the stock price, suggesting the presence of buyers at a critical level. These levels align with 2020’s lows, when the market sold off on COVID-19 fears, and couldn’t have gone any lower.

The takeaway is that this could be the first ripple in the wave that signals the change in tide for Whirlpool’s market. While headwinds persist, the company forecasts that tariff headwinds will ease in 2026, and analysts' consensus is for substantial margin improvement.

Analysts forecast Whirlpool’s F2026 revenue to be flat year-over-year, with earnings growing by 8%. Longer-term forecasts are rosier, with revenue growth expected to return by fiscal year 2027, and the estimates are likely to be low. The outlook for interest rate reduction has cooled, but the FOMC remains on track to cut rates by another 50 to 100 basis points by the middle of next year and potentially more by the end of 2026.

The takeaway is that housing activity is likely to pick up and underpin Whirlpool's performance, which is well-positioned given its mostly domestic supply chain. 

Whirlpool’s Insider, Institutional, and Analysts Trends Hang in the Balance

Whirlpool’s sell-side trends suggest there is value along with the risks. The insiders aren’t making any moves; their activity shows zero buys or sells in 2025, which can be seen as either good or bad. The critical detail is that the group owns more than 2% of the stock, a considerable amount of skin in the game, given the nearly $4 billion in market cap as of mid-November, and they aren’t selling.

This is compounded by the institutions, which sold some in early Q4 but have been buying robustly in 2025, owning more than 90% of the stock and providing market support. 

Analysts' trends are more iffy. The consensus sentiment reported by MarketBeat is Reduce. However, MarketBeat tracks nine analysts, with four ratings pegged at Hold and two at Buy, and recent price target changes have affirmed the consensus. While some revisions were reduced and others increased, the takeaway is that there is confidence in the forecast for 25% upside and a high potential for catalysts in upcoming releases.

Assuming operational quality improves over the coming quarters and the business outlook brightens, analyst trends are likely to follow suit, providing a lift for the market. WHR could easily advance by 25% in this scenario and then continue to grow by another 75% as the market recovers.

Whirlpool’s Biggest Risk Is Priced in and in the Rearview Mirror

The most significant risk for Whirlpool investors is the potential for a dividend cut, which has already occurred. As it stands, the company’s payout is manageable and exceeds 5% in November. There is some risk associated with growing debt levels, but this is mitigated by improved cash management and the outlook for margin improvement. 

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The article "Whirlpool’s Worst May Be Over—Upside Opportunity Ahead" first appeared on MarketBeat.