Whirlpool Corporation is a company based in the United States. The company designs, manufactures, and distributes household appliances around the world. The company sells appliances like refrigerators, washer and dryer machines, freezers, icemakers, and many others. The company operates under Whirlpool, KitchenAid, Roper, and many other brands. The company was founded in 1911.
Why You Should?
- Whirlpool is a great reopening play in an investor’s portfolio. Though the company has reported strong demand for its products during this pandemic, the company has been hurt as there were many commercial and housing development products that have been delayed due to the pandemic. These pandemic impacts will only be short to mid-term and will report even better numbers after the pandemic.
- Whirlpool will benefit under some aspects of the Biden administration. First, Biden looks to sign massive trade deals with countries like China and members of the EU. This will lower the cost of materials needed to manufacture appliances and will also increase the international sales of Whirlpool appliances. Furthermore, incentives given for home development projects will also increase the sales of the company.
- Impacts from the COVID-19 pandemic have also benefited the company’s sales of some appliances. As consumers stay at home, they have tended to spend more on home remodeling and appliance purchases as they try to make their homes more comfortable. This has benefited the company’s sales during this pandemic and has also benefited investors in the company.
- Whirlpool sells a wide range of products, something that will benefit the company goes through times where demand for one of their categories is weaker. For example, the company has seen a spike in demand for KitchenAid appliances during this pandemic while seeing a drop in demand for enterprise and commercial business. These various kinds of revenue streams have benefited the company and investors in the company.
- Whirlpool will continue to see strong demand due to the home building boom that is currently happening in this country. All of these homes will need multiple large and small appliances, something that will drive the demand for Whirlpool appliances for the future. This will benefit both the company and its investors.
Why You Should Not?
- Whirlpool faces tough competition from many large domestic and international companies. Some of these companies include LG, Samsung, Bosch, and General Electric. This competition might hurt both the company and its investors in the future.
- Impacts from the COVID-19 pandemic have also hurt the company. This is because many large and commercial projects have been delayed until there is more certainty after this pandemic is over. This has hurt the company and will continue to stain the company’s results in the short to mid-term. However, these impacts will go away along with the pandemic, setting the company up for strong growth in the future.
I think that Whirlpool is a great long-term investment due to its position as a good reopening play, impacts from the COVID-19 pandemic, impacts from a Biden administration, multiple revenue streams, and a home building boom. However, tough competition and impacts from the pandemic might hurt the company in the future.