Key Points
-
Interest rate-sensitive stocks came under pressure today.
-
Whirlpool faces some challenging near-term conditions.
-
In the longer term, Whirlpool should be a winner from the tariff conflict.
-
10 stocks we like better than Whirlpool ›
Shares in household appliances company Whirlpool (NYSE: WHR) declined by more than 5.5% by 3 p.m. ET today. Outside a rise in market interest rates (the 10-year Treasury rate is now up to almost 4.5%, putting pressure on interest rate-sensitive stocks like Whirlpool), there’s no stock-specific reason for the decline.
Whirlpool’s challenging 2025
Investors in Whirlpool can expect more volatility leading up to its second-quarter earnings report on July 29. While the stock has had an impressive run-up over the last three months (up 26%), it still faces significant near-term headwinds. Not only are interest rates stubbornly high and negatively impacting the housing market and therefore, demand for higher-margin discretionary purchases of household appliances, but the tariff conflict and the fear of further tariffs have likely caused Asian competitors to push products into the U.S. market.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
It all creates an uncertain near-term trading environment in a company with a dividend that cost $384 million in cash last year, $4.8 billion in debt (with $1.85 billion maturing in 2025), and pressure on its full-year guidance for $500 million to $600 million in free cash flow in 2025.
Image source: Getty Images.
Long-term potential
As such, don’t be surprised if Whirlpool cuts its dividend this year. That said, it might turn out to be a positive for the stock, as it would help alleviate some uncertainty surrounding debt repayment. Moreover, considering the longer term, Whirlpool is highly likely to be a winner from the trade conflict, as management views the Trump administration as leveling the playing field that has been tilted against Whirlpool over time.
It’s a curious mix of near-term risk and long-term opportunity, but today, the market focuses on the former.
Should you invest $1,000 in Whirlpool right now?
Before you buy stock in Whirlpool, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Whirlpool wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*
Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Whirlpool. The Motley Fool has a disclosure policy.
