Investors looking to make a contrarian bet should jump on Whirpool for the second half of the year, according to JPMorgan. Analyst Michael Rehaut named the company a top pick in a note to clients on Wednesday, saying that the rest of Wall Street was too negative about the company. "We believe the company is the most 'hated' name across both the sellside and buyside, as it is the only name in which the Street consensus has an earnings decline in 2022, while the stock's valuation represents significantly larger discounts to its 5-year averages vs. our universe," the note said. The stock performance has reflected that sentiment, with shares sliding more than 5% over the past three months. Whirlpool has buy ratings from less than half of Wall Street analysts, according to FactSet. With the second quarter earnings season approaching, Whirlpool is in a good position to prove its doubters wrong, JPMorgan said. "Perhaps most importantly on a near-term basis, WHR's 2H21 comps are among the easiest across our larger-cap names, thereby offering good 'insulation' from broader concerns regarding consumer demand slowing or showing mean reversion over the next several quarters," the note said. JPMorgan has a price target of $278 per share for the company, which is 28% above where the stock closed on Tuesday. -CNBC's Michael Bloom contributed to this report.
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Investors looking to make a contrarian bet should jump on Whirpool for the second half of the year, according to JPMorgan.