Why Whirlpool Stock Swelled Higher Today
Shares in household appliance maker (NYSE: WHR) have risen by 6.5% as of midday today. The move comes after a high-profile speech by Federal Reserve Chair Jerome Powell gave support to the idea that a rate cut is coming. Discussing the inflation outlook, Powell noted that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."
Lower interest rates could have a significant impact on Whirlpool for three interconnected reasons. First, they would likely improve the housing market by making it more affordable, and that's likely to feed through into more appliance sales.
Second, they would have an inordinate impact on Whirlpool's higher-margin discretionary (as opposed to replacement) demand, whereby consumers are likely to buy newer models or planned kitchens. Third, lower interest rates would make refinancing Whirlpool's debt easier.
Source Fool.com
Whirlpool Corp. Stock
The sentiment is rather negative at the moment with 7 Sell predictions and 2 Buy predictions.
With a target price of 66 € there is a slightly negative potential of -3.2% for Whirlpool Corp. compared to the current price of 68.18 €.
