Home Market News The Ascendant Stars: Unleashing the Potential of Whirlpool and Owens Corning

The Ascendant Stars: Unleashing the Potential of Whirlpool and Owens Corning

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The Ascendant Stars: Unleashing the Potential of Whirlpool and Owens Corning

As the S&P 500 index continues its triumphant ascent, showcasing a robust 25% surge over the past year with an impressive 6.5% year-to-date leap in 2024, investors are on the prowl for hidden gems that have not yet basked in this glow. Enter Whirlpool (NYSE: WHR) and Owens Corning (NYSE: OC). These underdogs hold untapped potential waiting to be unleashed. Here’s why.

The Unfolding Narrative of Whirlpool Stock

Beneath the surface, a delicate dance unfolds between rising interest rates and the housing market, as demonstrated by the sales of existing homes seen in the chart below. Interestingly, Whirlpool’s stock is intricately entwined with the health of the housing market, displaying a discernible trend.

WHR Chart

WHR data by YCharts

Despite this precarious connection, underpinning Whirlpool’s future lies a strategic pivot toward its North American stronghold. Notably, a transformative deal with Arcelik promises enhanced focus by divesting its European arm while pursuing aggressive cost-cutting measures, yielding promising returns in the near future.

History teaches us that market cycles ebb and flow, suggesting a favorable turn in the tide for Whirlpool as the housing demand reinvigorates. With a robust plan to increase margins and bolster free cash flow, the stock stands poised for a substantial uptick.

Decoding the Potential of Owens Corning Stock

Amidst a subdued environment for existing home sales and housing starts, the backdrop is set for an enduring industry expansion. Owens Corning, a stalwart in roofing, insulation, and composites, is primed to capitalize on this burgeoning narrative through its strategic acquisition of Masonite International.

US Existing Home Sales Chart

US Existing Home Sales data by YCharts

The symbiotic union between Owens Corning and Masonite sets the stage for synergistic revenue streams, underpinned by strategic cost-saving initiatives. By focusing on fortifying its foothold in the U.S. housing market, Owens Corning charts a path toward sustained growth and profitability.

Additionally, a meticulous review of its operational landscape, including a strategic evaluation of non-core assets, hints at a streamlined future for Owens Corning, fueling optimism among investors.

All signs point to an auspicious journey ahead for both Whirlpool and Owens Corning, beckoning investors to ride the rising tide of a resurgent housing market.

Are you ready to explore the potential of these stocks? Dive in and discover the untapped opportunities that await.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Owens Corning. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.