Whirlpool: Is there more upside to WHR shares?

YTD WHR shares up 108% vs. the 57% gain in S&P 500 Household Durables Index (all data based on Friday Nov 16 closing prices).

NEGATIVES

• Fiscal Cliff

• European Recession

• US Economic Malaise

• FX

• Asian Demand Remains Muted

POSITIVES

• US Housing Rebound

• LA Growth Opportunities

• ‘Kitchen Sprawl’ Trend

• Significant Gross Margin Opportunity

Rationalized business model positioned to generate improved profit margins with increased demand; expected $200M benefit in 2012 and 2013. Management guidance (10/23) Raised to $6.90 – $7.10 EPS and FCF of $125M – $175M; 5.5%-6% EBIT margin, up 300bps with a medium term opportunity to 8% (compared to the 10.9% EBIT median peer EBIT margin) along with 5%-7% revenue growth and 10%-15% EPS growth.

See my write up in Value Retail News here.