Today's economic uncertainty, namely wild guesses from economists and talking heads as to where the United States economy will head next, sends aftershocks across different industries and makes some of them attractive places to look for upside today.

When it comes to real estate, there is a direct slowdown in residential activity, as taken from the monthly building permits decline over the past couple of quarters. When you think about the dominos that can fall once fewer residential units hit the market, surely the appliances side should come to mind.

This train of thought can be taken from theory to practice when analyzing the latest ISM Manufacturing PMI report, where the appliances industry comments its sentiment of "... additional softening in the market. Customers are hesitant to provide extended forecasts...".

All this means for investors looking for a good deal is that they might get one - or two - of really high-quality appliance stocks at ridiculously low prices. 

Whirlpool

Sporting a 4.5% decline in just the past week, Whirlpool (NYSE: WHR) should be one of the first names that comes to mind when investors think of home appliances.

Think about it, most, if not all, new homes sold in the U.S. come equipped with a refrigerator and other such appliances, and most builders look to equip their units with Whirlpool products.

Following this logic, it comes as no surprise that markets are giving up on this stock, knowing that contractions are on the horizon. However, these may not be all bad news for potential buyers who understand value investing.

Looking at where this company stands relative to the sector, it will become evident why today's prices may be nearing a bottom. By analyzing the forward price-to-earnings ratio, investors can understand where markets value the next twelve months of expected earnings in a company.

Whirlpool will stand at the bottom of the pack, valued today at a forward P/E of only 7.8x relative to the industry average of 11.5x.

Despite these significant discounts to the peer group, analyst ratings still deny the upside potential, as they assigned a net 4% downside from today's prices.

Understanding that these are just cyclical contractions, which are affecting the whole industry thus not like something is specifically wrong with Whirlpool, management has placed their own vote of confidence. 

During the past twelve months, up to eight hundred thousand shares were repurchased from the open market, sending a subtle message with two tail implications. First, management believes the stock to be cheap today, and their outlook on the future remains positive, given their latest bet.

The bottom line is, will investors join management and other value players in this cyclical recovery story? Or will they pass on a 5.1% annual dividend yield while the stock rotates back up?

Electrolux 

Markets can sometimes become irrational, at which time investors should entertain the possibility of taking advantage of these periods. In the case of AB Electrolux (OTCMKTS: ELUXY), a decade-low valuation (excluding COVID-19) will bring about the perfect example of irrationality and fear.

While North American sales declined by 5.6% during the past twelve months, according to the quarterly investor presentation, net sales for the company only fell by 3%.

It is hardly a blow to cause the stock to sell off; it seems markets are forgetting that North American sales are not the only ones driving this company.

Latin American sales grew by 10.3% during this period, offsetting some of the cyclical headwinds in those other regions and showing that this company has enough diversifying power to cushion the current U.S. environment. 

The robustness of this business model can be reflected in the swift turnaround in free cash flow (operating cash flow minus capital expenditures), funds that can be used to reward shareholders or reinvest back into the business.

Nearly $90 million of free cash flow was generated in the quarter, a massive improvement from negative levels a year ago, and management has found a warm home to put these funds to work.

$48 million were used to repurchase stock, representing nearly 2% of the company's market capitalization, an aggressive message from management implying the stock to be cheap today.

Looking at Electrolux's stock chart, investors will note that today's prices are nearing a strong support level around the $20 to $25 a share area, something analysts are sure to consider. A consensus price target of $56 a share will imply a more than 100% upside from today's prices.