Whirlpool Corp (WHR)

This screens well on the things that she looks for. There is a compelling valuation, a good balance sheet and good margins. With the improvements you are seeing in the US and people spending, this is a pretty good name to own.

Reported record earnings. Trades at 11 or 12 times earnings. Decent dividend of 1.74%. A very undemanding multiple with very decent growth. There is an appliance cycle similar to autos, where people have been postponing. Sales were up 9% in North America for this company. 75% of households in the US own all 4 of washer, dryer, fridge and stove compared to China of 17%, India 11% and Brazil at less than 20%.

Likes this because it is not well covered by analysts. Balance sheet is very good. Has several multibillion-dollar brands. Exposure to Europe is improving. A lot of exposure to sales of existing homes and new homes. Could approach $200 within a year and move upwards after that. Yield of 1.7%.

Well managed company. This tends to move with the homebuilders. Has done well, not just on the back of the US experience, but also its emerging market experience. Latin America has been a good performer for them. Have also been very good managers of their business through cost initiatives. They’ve been able to improve the mix. Higher margins are dominating now. Pretty good value here.