Air purifiers have gained popularity over the past few months, riding on rapidly spreading coronavirus cases in the country and abroad. Air purifiers may be a certain way to shield oneself against the disease, especially when used in the right manner, accompanied by the right precautions.
This is why it would be prudent to look into stocks that will gain from the rise in demand for air purifiers.
Air Purifiers Market Anticipates Good Growth Ahead
According to a report by Research and Markets, the global air purifiers market is expected to reach $1.86 billion in 2023 at a CAGR of 6.13% from $1.55 billion this year after registering a CAGR of 20.74% from $1.29 billion in 2019.
The major factor driving the popularity of air purifiers is the rising concern for airborne diseases. Air purifiers can, to a large extent, help consumers who are suffering from asthma, airborne allergies and other breathing disorders. This is why most residential and commercial units invest in air purification equipment.
COVID-19 Pushes Demand for Air Purifiers, Here’s Why
In fact, demand for air purifiers has gone up in the United States with the onset of the pandemic earlier this year. Coronavirus is primarily transmitted from an infected person to a healthy one 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 other best practices recommended by the Centers for Disease Control and Prevention for an ideal plan to protect oneself against the disease.
This is where high efficiency particulate air (HEPA) filters come in. According to Wirecutter, the virus responsible for COVID-19 is approximately 0.125 micron in diameter.The virus thus falls in the particle-size range that HEPA filters are more-than-capable of capturing (0.01 micron and above). A study of HEPA filtration by NASA also proves why these filters are most efficient.
Therefore, it comes as no surprise that as the number of new cases of the highly infectious disease rises, demand for HEPA filters by consumers for their personal use will witness an uptick.
To back the case of HEPA filters further, one may take a look at the Hong Kong Hospital Authority’s recommendation of using portable air purifiers with HEPA filters in hospitals during the SARS outbreak in 2003. The filters likely reduced transmission of the disease to healthcare workers in hospitals where isolation wards were unavailable.
In the United States, the CDC also recommended the use of these purifiers to lessen viral concentrations of the SARS virus when well-ventilated hospital rooms were occupied.
4 Stocks in Focus
We have chosen four stocks of companies that offer air purification equipment and components. The stocks of these companies have demonstrated good price performance over the past two-three months.
All these stocks carry a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Koninklijke Philips N.V. (PHG - Free Report) is a major manufacturer of smart air purifiers and humidifiers. The products come with HEPA filters for increased protection. Koninklijke Philips has expected earnings growth of 15.2% for the next year. Shares of the company, which belongs to the Zacks Electronics - Miscellaneous Products industry, have gained 18.9% over the past three months compared to the industry’s growth of 6.4% during the same period.
Whirlpool Corporation (WHR - Free Report) 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 air.
Whirlpool has expected earnings growth of 31.7% for next year. Shares of the company, which belongs to the Zacks Household Appliances industry, have gained 49.4% over the past three months compared to the industry’s growth of 44.8% during the same period.
Honeywell International Inc. (HON - Free Report) is a leading manufacturer of HEPA air purifiers. The company offers a wide range of the said products at competitive prices.
Honeywell International has expected earnings growth of 10.5% for the next year. Shares of the company, which belongs to the Zacks Diversified Operations industry, have gained 5.1% over the past two months compared to the industry’s growth of 3.3% during the same period.
The Unilever Group (UN - Free Report) is another major player in the area of smart air purifiers. The company acquired Blueair in 2016 to step into the air purification industry.
Unilever has expected earnings growth of 6.1% for the next year. Shares of the company, which belongs to the Zacks Soap and Cleaning Materials industry, have gained 15.9% over the past three months compared to the industry’s growth of 10.1% during the same period.
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