The COVID-19 pandemic has raised market demand and the value of a wide range of things that so long craved for attention. Personal protective equipment like face masks and gloves, hand sanitizers and air purifiers have become indispensable in our lives over the past few months.
These are perhaps the only things that we have in our hands as of now to fight the coronavirus as a successful vaccine is still far from reality. Air purifiers, especially, have been high on demand, following the COVID-19 outbreak.
COVID-19 Helping Air Purifier Sales
Air pollution leads to about 6.5 million deaths each year, making it the world’s fourth-largest threat to human health, according to a 2016 report by the International Energy Agency. The threat has only grown since then, with this year becoming an exception.
Air purifiers can, to a large extent, help people who are suffering from asthma, airborne allergies and other breathing disorders. And since COVID-19 is airborne, air purifiers have seen a surge in residential and commercial demand as a preventive measure.
Air Purifier Market Poised to Grow
Coronavirus is primarily transmitted from an infected to a healthy person through respiratory droplets and contact routes. According to the United States Environmental Protection Agency, air purifiers can diminish airborne contaminants, which comprise viruses in any confined space. However, one would still need to use it along with the other best practices recommended by the Centers for Disease Control and Prevention (CDC) for an ideal plan to protect oneself against the disease. In fact, the CDC revised its guidelines on Oct 5 warning people that those who are six feet away from each other too are under risk of getting infected from tiny particles that linger in the air. This definitely is a cause of worry and makes air purifiers all the more important.
Per a report from market research agency Arizton, the global air purifier market share is expected to witness a CAGR of over 42% from 2019 to 2025. Residential air purifiers are the most effective devices to improve indoor air quality and to reduce or remove the sources of pollutants and to ventilate with clean air, especially during the time of this pandemic. According to a ResearchAndMarkets.com report, global residential air purifiers market is expected to reach $13.6 billion in 2025 from $9.2 billion in 2020, at a CAGR of 8.2% during the forecast period.
Stocks in Focus
Given the growing cases of coronavirus in the United States since states started reopening, the importance of air purifiers will only grow from here.
Whirlpool Corporation WHR is one of the largest manufacturers of home appliances in the world. Besides, it also produces hermetic compressors for refrigeration systems and offers quality air purification solutions. According to Whirlpool, the company’s HEPA purifiers are capable of removing as much as 99.97% of particles from the air.
The company’s expected earnings growth rate for next year is 26.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. Shares of the company have gained 45.3% over the past three months. Whirlpoolcarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Newell Brands Inc. NWL is a global manufacturer and marketer of consumer and commercial products, including air purifiers Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Marmot, Oster, Rubbermaid, Sunbeam, FoodSaver, Graco, Baby Jogger, and others.
The company’s expected earnings growth rate for next year is 15.2%. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. Shares of the company have gained 10.3% over the past three months. Newell Brandshas a Zacks Rank #2.
Carrier Global Corp. CARR) is a provider of heating, ventilating and air conditioning, refrigeration, fire, security and building automation technologies. Following the COVID-19 outbreak, the company has launched a wide range of air purifiers for residential units, schools and for single apartments.
The company’s expected earnings growth rate for next year is 15.7%. Shares of the company have gained 32.9% over the past three months. Carrier Global has a Zacks Rank #3 (Hold).
Unilever NV UN entered the air purifier space with the acquisition of Sweden-based Blue-Air, which has been one of the market leaders in air purifying solutions, with the leading filtration technologies and design.
The company’s expected earnings growth rate for next year is 2.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 30 days. Shares of the company have gained 13% over the past three months. Unilever has a Zacks Rank #3.
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