Chart of the Day: Should You Worry About Whirlpool?

Not to be a Debbie Downer. But it hasn’t been ALL good news on the earnings front. Exhibit A is Whirlpool Corp. (WHR). So, how much should you worry?

Let’s start with the details. Whirlpool warned of a “recession-level industry decline” for big-ticket consumer purchases like household appliances. It lost 56 cents per share in Q1, missing the average forecast for 38 cents in earnings by a country mile. Plus, it cut its full-year profit forecast range in half – and suspended its dividend.

Result? Whirlpool stock slid 11.9% to the lowest level since December 2011, as you can see in my MoneyShow Chart of the Day.

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Whirlpool Corp. (WHR)

Source: TradingView

Not great. Shares of global competitor AB Electrolux (ELUXY) also trade like death warmed over, recently slumping to a 17-year low amid lousy North American market sales.

Worth noting: Larry McDonald also highlighted the weak performance of housing-market-sensitive stocks like Home Depot Inc. (HD) in this week’s MoneyShow MoneyMasters Podcast. It’s down 5.4% year-to-date, while competitor Lowe’s Cos. (LOW) is down 2.2%. The State Street SPDR S&P 500 ETF Trust (SPY) is up 5.9% in the same timeframe.

So, getting back to the original question: Should you worry about this action? Sell stocks broadly and move to cash because some appliance makers are hurting bad…and home improvement retailers look “meh?” I wouldn’t go THAT far.

Appliance maker LG Electronics is trading just fine in South Korea. Meanwhile, Samsung Electronics Co. Ltd. is going vertical – though that’s because of its AI-related operations, not appliance demand! Plus, we’re seeing companies with commercial construction exposure – especially data center-related operations – doing great. Caterpillar Inc. (CAT) is Exhibit A there.

That means this is more of a “some winners, some losers” situation. Not a reason to run for the hills.