Stoves, refrigerators, dishwashers, oh my!
Whirlpool Corporation (NYSE:WHR)’s biggest competition for years was Maytag, until it bought the appliance giant in 2006. Since then, Whirlpool Corporation (NYSE:WHR)’s stock has nearly doubled despite the 2009 Great Recession. Within the U.S. market, Whirlpool has been a consistent leader with over 40% market share and 2012 sales of nearly $18 billion.
Whirlpool Corporation (NYSE:WHR) also has a solid brand name and reputation, in addition to growing net earnings and revenue. It holds a top-10 spot in J.D. Power and Associates’ ranking for overall customer satisfaction in dishwashers and refrigerators. The trends that favor the appliance powerhouse are even more important than customer rankings.
First, Whirlpool Corporation (NYSE:WHR)’s sales are increasing in every region of the world because of improved margins. On a historical basis, it actually saw less revenue last year than in 2008 ($4.7 billion versus $4.9 billion), but net earnings improved due to margins nearly doubling. Surging construction in the housing market will also benefit Whirlpool as new major appliances are installed. Construction of new apartments surged 26% in July. I wouldn’t be surprised if this surge shows up on Whirlpool Corporation (NYSE:WHR)’s bottom line in the next few quarters.
“Investing in what you know” should be taken one step further. Instead, “invest in what you use often.” The kitchen is a great place to start. Whether you eat out most of the time or don’t eat much at all, there is a good chance you have a toaster or an oven — used or unused.
At least one of your kitchen appliances is likely made by either Jarden Corp (NYSE:JAH) or Whirlpool Corporation (NYSE:WHR). While General Mills is usually seen as a one-dimensional cereal company by the general public, its portfolio includes much more. In the end, all three companies are great starting points for the novice investor.
The article Statistically You Already Own at Least 1 of These Kitchen Stocks originally appeared on Fool.com and is written by Michael Carter.
Michael Carter has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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