Whirlpool: Betting On A U.S. Manufacturing Recovery
- Whirlpool faces potential short-term strains but possible long-term benefits from the Trump administration's efforts to improve US manufacturing activity.
- Despite recent financial struggles, including high debt and low margins, WHR's valuation reflects its risks, with analysts predicting a margin recovery after 2025.
- US manufacturing's post-pandemic recession and low home sales are significant challenges, but a supportive regulatory environment could aid Whirlpool's future growth.
- I cautiously upgrade my view on WHR to mildly bullish. I expect pressures in the short term but see it as a reasonable long-term value investment.
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From 2018 to 2023, the US had a tariff policy on washing machines. The tariff was initially set at 20% for the first 1.2M units and 50% above that, with reductions through 2021. The tariffs were
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