In this article, we will be looking at the 10 best home appliance stocks to buy. If you want to skip our detailed analysis of these stocks, you can go directly to the 5 Best Home Appliance Stocks to Buy.
For as long as humans intend to live in houses, there will be a demand, and a steadily rising one at that, for household appliances. With the outbreak of the pandemic, the global supply chain for most home appliance companies was disrupted, thus there has been a vast gap between global demand and supply of household appliances. However, as vaccination campaigns drive back the pandemic’s threat, and consumers’ spending power increases, home appliances and related stocks are expected to gain in the coming years. The market for appliances is expected to grow at a CAGR of over 4% between 2021-2026, for instance, according to Mordor Intelligence. This market has steadily been growing even despite the pandemic, reaching a revenue of $19,416 million just last year, according to Pricing Excellence. As such, given improvements in the coronavirus pandemic situation and increasing spending power of consumers allowing more people to invest in household appliances for their comfort, the home appliance industry is set to gain even more than it has thus far.
Additionally, with changing consumer preferences and trends, especially in light of the outbreak of the coronavirus pandemic, the household appliance industry may just be one of the only industries making an effort to keep up. For instance, as of December last year, the household appliances industry was making a steady turn towards branding itself as one of the more “hygienic” sectors contributing to the global economy, according to a Wall Street Journal report. As if washing machines needed to get any cleaner, Whirlpool Corporation (NYSE: WHR) decided to start fitting its machines with in-built heating to remove germs and allergens from clothes, for instance.
This is just one of the numerous examples of household appliance companies like Whirlpool Corporation (NYSE: WHR), Walmart Inc. (NYSE: WMT), Best Buy Co., Inc. (NYSE: BBY), and The Home Depot, Inc. (NYSE: HD) fighting to remain relevant and profitable after the onset of the pandemic, but it’s good enough to prove the claim that the home appliances industry is bound to be needed for quite some time yet. With that in mind, we have compiled a list of the best home appliance stocks to buy.
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Without further ado, let’s look at the 10 best home appliance stocks to buy. The stocks added to our list below were selected on the basis of hedge fund sentiment, analysts’ ratings, fundamentals, and growth potential based on core business strengths.
Best Home Appliance Stocks to Buy
10. AB Electrolux (publ) (OTC: ELUXY)
Number of Hedge Fund Holders: N/A
AB Electrolux (publ) (OTC: ELUXY) is a Swedish manufacturer of household appliances for sale in Europe, North America, Latin America, the Asia Pacific, the Middle East, and Africa. The company ranks 10th on our list of the best home appliance stocks to buy.
This April, JP Morgan raised its price target on AB Electrolux (publ) (OTC: ELUXY) to approximately $26.15 dollars, while Morgan Stanley raised its price target on the shares to approximately $27.78, keeping an Equal Weight rating on the shares.
In the first quarter of 2021, AB Electrolux (publ) (OTC: ELUXY) had an EPS of $1.29, beating estimates by $0.42. The company’s revenue was $3.48 billion, up 28.55% year over year, AND beating estimates by $189.25 million. AB Electrolux (publ) (OTC: ELUXY) has a gross profit margin of 20.66% and has gained 20.98% in the past 6 months and 21.71% year to date as well.
Like Walmart Inc. (NYSE: WMT), Best Buy Co., Inc. (NYSE: BBY), Whirlpool Corporation (NYSE: WHR), and The Home Depot, Inc. (NYSE: HD), AB Electrolux (publ) (OTC: ELUXY) is a good stock to buy.
9. Hamilton Beach Brands Holding Company (NYSE: HBB)
Number of Hedge Fund Holders: 8
Hamilton Beach Brands Holding Company (NYSE: HBB) designs and distributed small electric household and specialty housewares appliances for sale in the US and internationally. The company’s brands include the TrueAir and Proctor Silex brands, among others, and it ranks 9th on our list of the best home appliance stocks to buy.
This May, Hamilton Beach Brands Holding Company (NYSE: HBB) raised its quarterly dividend by 5% to $0.10 per share, while in June, the company entered into a strategic partnership with HealthBeacon Limited for the provision of smart ICMs in the US and Canada.
In the first quarter of 2021, Hamilton Beach Brands Holding Company (NYSE: HBB) had an EPS of $0.21. The company’s revenue was $149.2 million, up 23.5% year over year. Hamilton Beach Brands Holding Company (NYSE: HBB) has a gross profit margin of 22.99% and has gained 14.85% in the past 6 months and 23.73% year to date.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Hamilton Beach Brands Holding Company (NYSE: HBB). The total value of their stakes was roughly $10.15 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $6.40 million.
Like Walmart Inc. (NYSE: WMT), Best Buy Co., Inc. (NYSE: BBY), Whirlpool Corporation (NYSE: WHR), and The Home Depot, Inc. (NYSE: HD), Hamilton Beach Brands Holding Company (NYSE: HBB) is a good stock to buy.
8. Watsco, Inc. (NYSE: WSO)
Number of Hedge Fund Holders: 22
Watsco, Inc. (NYSE: WSO) is a provider of air conditioning, heating, and refrigeration equipment and related parts and supplies to consumers in the US, Canada, Mexico, and Puerto Rico. The company ranks 8th on our list of the best home appliance stocks to buy.
This March, JP Morgan upgraded Watsco, Inc. (NYSE: WSO) from Underweight to Neutral with a $218 price target. Analyst Stephen Tusa commented that the upgrade was prompted by the company’s improvement in execution in 2020.
In the first quarter of 2021, Watsco, Inc. (NYSE: WSO) had an EPS of $1.39, beating estimates by $0.47. The company’s revenue was $1.14 billion, up 12.69% year over year, beating estimates by $66.01 million. Watsco, Inc. (NYSE: WSO) has a gross profit margin of 24.50% and has gained 21.5% in the past 6 months and 29.1% year to date.
By the end of the first quarter of 2021, 22 hedge funds out of the 866 tracked by Insider Monkey held stakes in Watsco, Inc. (NYSE: WSO). The total value of their stakes was roughly $280 million. This is compared to 24 hedge funds in the previous quarter with a total stake value of approximately $243 million.
Like Walmart Inc. (NYSE: WMT), Best Buy Co., Inc. (NYSE: BBY), Whirlpool Corporation (NYSE: WHR), and The Home Depot, Inc. (NYSE: HD), Watsco, Inc. (NYSE: WSO) is a good stock to buy.
7. Whirlpool Corporation (NYSE: WHR)
Number of Hedge Fund Holders: 28
Whirlpool Corporation (NYSE: WHR) is a manufacturer and marketer of home appliances and related products for sale in the US and internationally. The company’s main products include refrigerators, freezers, and laundry appliances, among others, and it ranks 7th on our list of the best home appliance stocks to buy.
This July, Goldman Sachs kept its Buy rating on Whirlpool Corporation (NYSE: WHR) with its $280 price target on the shares. Analyst Susan Maklari also commented on the company’s promotions strategy this Fourth of July with positivity, saying that the company would benefit from increased volumes, prices, and margins.
In the first quarter of 2021, Whirlpool Corporation (NYSE: WHR) had an EPS of $7.20, beating estimates by $1.80. The company’s revenue was $5.36 billion, up 23.88% year over year, beating estimates by $413.80 million. Whirlpool Corporation (NYSE: WHR) has a gross profit margin of 20.96% and has gained 22.11% in the past 6 months and 27.20% year to date.
By the end of the first quarter of 2021, 28 hedge funds out of the 866 tracked by Insider Monkey held stakes in Whirlpool Corporation (NYSE: WHR). The total value of their stakes was roughly $1.25 billion. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $1.05 billion.
6. Pentair plc (NYSE: PNR)
Number of Hedge Fund Holders: 30
Pentair plc (NYSE: PNR) offers smart water solutions to consumers across the world. The company’s Consumer Solutions segment manufactures and sells residential and commercial pool equipment and water treatment products and systems. It ranks 6th on our list of the best home appliance stocks to buy.
This June, Cowen raised its price target on Pentair plc (NYSE: PNR) from $75 to $80 with an Outperform rating on the shares. Citigroup also raised its price target on the stock to $81, keeping a Buy rating on the shares.
In the first quarter of 2021, Pentair plc (NYSE: PNR) had an EPS of $0.81, beating estimates by $0.19. The company’s revenue was $865.90 million, up 21.96% year over year, beating estimates by $88.81 million. Pentair plc (NYSE: PNR) has a gross profit margin of 35.60% and has gained 18.5% in the past 6 months and 34.48% year to date.
By the end of the first quarter of 2021, 30 hedge funds out of the 866 tracked by Insider Monkey held stakes in Pentair plc (NYSE: PNR). The total value of their stakes was roughly $775 million. This is compared to 29 hedge funds in the previous quarter with a total stake value of approximately $664 million.
Like Walmart Inc. (NYSE: WMT), Best Buy Co., Inc. (NYSE: BBY), Whirlpool Corporation (NYSE: WHR), and The Home Depot, Inc. (NYSE: HD), Pentair plc (NYSE: PNR) is a good stock to buy.
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Disclosure: None. 10 Best Home Appliance Stocks to Buy is originally published on Insider Monkey.
Correction: A previous version of this article incorrectly mentioned GE as one of the appliance stocks to buy based on the company’s Appliance division. The division was sold in 2016 to Haier.
