In this article, we will look at the 10 Best Home Appliance Stocks to Buy According to Analysts.
Overview of the US Home Appliance Industry
The home appliance industry is likely to continue flourishing as long as people continue buying homes and relying on technology to make their daily tasks easier. According to Grand View Research, the household appliances market in the US was valued at $58.33 billion in 2023. It is anticipated to grow at a compound annual growth rate (CAGR) of 7.1% between 2024 and 2030. One of the primary driving forces behind this growth is the rise in the disposable income levels of consumers. In addition, the rapid pace of urbanization is also a pivotal factor behind the market’s expansion.
According to a report by Mordor Intelligence, the United States’ major home appliances market is expected to have a market size of $34.42 billion in 2025. It is anticipated to grow at a compound annual growth rate of 2.93% between 2025 and 2030, reaching $39.77 billion at the end of the forecast period. The growing economic pressure and changing consumer lifestyles are the primary reasons behind the growth in the major home appliances market in the US.
In addition, the rising penetration of distribution channels such as brand outlets, supermarkets, specialty stores, and e-commerce is contributing to this growth. The demand for primary household appliances such as washing machines, dishwashers, and mixer grinders is significantly increasing due to consumers’ busy and sedentary lifestyles. Another report by Mordor Intelligence shows that the overall US home appliance market size will grow at a compound annual growth rate of 3% between 2025 and 2030, reflecting similar trends.
Trends in the US Home Appliance Market
A prominent trend emerging in the home appliance industry is people opting to purchase home appliances directly from manufacturers instead of using traditional middlemen. According to PWC’s June 2023 Global Consumer Insights Pulse Survey, a majority of customers, around 63%, reported buying products directly from a brand’s website. This number is expected to rise in the coming years, as around 29% of the consumers stated that while they hadn’t yet adopted this trend, they were thinking about going direct-to-consumer.
The US Appliance Satisfaction study conducted by J.D. Power in 2023 showed that around 75% of appliance purchases occurred on the first store visit. In addition, nearly 71%, or three-fourths of home appliance transactions, took place in-store. Although 29% of the purchases occurred online, a majority of consumers still preferred seeing the equipment in person before buying it.
In 2023, Christina Cooley, home intelligence lead at J.D. Power, stated:
“This year’s data shows us that 56% of home appliance shoppers are doing their research online before heading in-store to purchase. Though price is almost always going to be the main driver of whether someone decides to purchase an appliance or not, one-third of buyers did not purchase because they were seeking specific options and features, and one-fifth indicated they couldn’t purchase, as their desired appliance wasn’t in stock.”
Will the Growth of the Housing Market Affect the Home Appliance Industry?
According to Mordor Intelligence, the US housing sector is likely to generate growing demand for home appliances. It is, thus, a prominent driving force behind the industry’s future growth prospects. Development of the housing sector and improvement in people’s living conditions have a direct positive effect on the growth of the home appliance market. Therefore, a growing housing sector in the US is expected to trigger growth in the country’s home appliance market.
With these trends in mind, let’s examine the 10 best home appliance stocks to buy according to analysts.
Photo by Naomi Hébert on Unsplash
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 30 home appliance stocks. We then selected the top 10 stocks with the highest analyst upside potential as of January 2, 2025. The list is sorted in ascending order of analyst upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Home Appliance Stocks to Buy According to Analysts
10. The Home Depot, Inc. (NYSE:HD)
Analyst Upside: 15.68%
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that offers a range of home appliances and other home improvement products. The company also offers home installation services and tool and equipment rental. It operates around 2,345 stores throughout the United States, including Puerto Rico and territories of the US Virgin Islands, Canada, Guam, and Mexico. The Home Depot, Inc. (NYSE:HD) primarily serves two customer groups: Professional Customers (Pros) and do-it-yourself (DIY) Customers.
The company is one of the leaders in DIY home improvement, and made $40.2 billion in sales in fiscal Q3 2024, experiencing a 6.6% increase from the same period last year. This growth was attributed to increased engagement across seasonal goods in certain outdoor projects. However, the company’s same-store sales fell 1.3% compared to fiscal Q3 2023. The home improvement market in North America was estimated to be worth $667 billion in 2023, and is anticipated to reach $1.2 trillion by 2032. Although The Home Depot, Inc. (NYSE:HD) is expected to benefit from this growing market, the results of this growth may take longer to materialize due to a slowdown in customer spending.
Its larger remodeling projects are experiencing increasing pressure due to the continued macroeconomic uncertainty and high interest rate environment. Despite the continued uncertainty, the company expects its sales for fiscal 2024 to increase by around 4%. To drive growth, it is focusing on improving its interconnected experience and promoting store expansion. It opened five new stores in fiscal Q3 2024, and expects to open 12 more in fiscal 2024. It ranks tenth on our list of the 10 best home appliance stocks to buy according to analysts.
9. The Middleby Corporation (NASDAQ:MIDD)
Analyst Upside: 18.12%
The Middleby Corporation (NASDAQ:MIDD) designs, manufactures, and sells residential kitchen equipment, food processing equipment, and commercial food service equipment. Its Residential Kitchen Equipment Group manufactures and sells various kitchen appliances, including refrigerators, microwaves, stoves, cookers, wine cellars, and others. It is expanding its portfolio by bringing in new technologies and brands.
Although the company experienced a decline in revenue in fiscal Q3 2024, its profitability initiatives continued to take hold as it posted strong margins across its business. It also reported margin expansion compared to fiscal Q2 2024. In addition, the company has been able to mint cash and generated $447 million in cash flow year-to-date, a 20% improvement from 2023. Due to the strong cash flow generated by The Middleby Corporation (NASDAQ:MIDD), it has reduced its leverage rapidly, which declined from 2.7x a year ago to around 2x at the end of fiscal Q3 2024.
Since the company has a strong balance sheet, it is in a position to capitalize on future market opportunities. The Middleby Corporation (NASDAQ:MIDD) has focused on acquisitions, technology innovation, and diversification in the past years to sustain growth. In October, it acquired Emery Thompson, a well-established brand in the frozen dessert category that is expected to enhance The Middleby Corporation’s (NASDAQ:MIDD) product offerings. It ranks ninth on our list.
Ariel Small Cap Value Strategy stated the following regarding The Middleby Corporation (NASDAQ:MIDD) in its Q2 2024 investor letter:
“Additionally, leading food equipment manufacturer, The Middleby Corporation (NASDAQ:MIDD), declined in the period following an earnings miss driven by weaker-than-anticipated organic sales across the commercial, residential, and food processing businesses. Importantly, management noted conditions are improving, with channel inventories returning to normalized levels and order volumes trending in a positive direction. Meanwhile, profitability remains solid, and MIDD continues to generate strong free cash flow. In our view, MIDD’s differentiated brands and kitchen innovations offer the latest in automation and advanced cooking technologies, positioning the company for growth and margin expansion as it serves the rapidly evolving needs of the food service industry.”
8. Lowe’s Companies, Inc. (NYSE:LOW)
Analyst Upside: 20.54%
Lowe’s Companies, Inc. (NYSE:LOW) offers home improvement products in various categories, including appliances, lawn and garden, kitchens and baths, and building materials among others. Its portfolio includes an elaborate collection of national brand-name merchandise and its private brands. The company operates more than 1,700 home improvement stores.
It reported sales worth $20.2 billion in fiscal Q3 2024, which were primarily driven by the company’s strength in two key categories: online sales and Pro, which offers membership discounts based on how much the customers spend.
Lowe’s Companies, Inc. (NYSE:LOW) has three primary business drivers that are continually working in its favor. These include strong home price appreciation, disposable personal income outpacing inflation, and the medium age of homes in the US standing at its oldest in US history. These drivers are anticipated to support demand for the company’s offerings in the long term, as existing homeowners are likely to continue investing in home upgrades and repairs.
Madison Investors Fund stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2024 investor letter:
“In the third quarter, the top five individual contributors to performance relative to the benchmark were Parker-Hannifin Corporation, Fiserv, Lowe’s Companies, Inc. (NYSE:LOW), Brookfield Corporation, and Progressive Corporation. Despite operating in very different sectors, Lowe’s Companies and Brookfield Corporation are both expected to benefit from the economic activity spurred on by declining interest rates. The Federal Reserve’s decision to lower interest rates sparked investor enthusiasm for both companies during the quarter, even as their sales and profits continue to moderate. For Lowe’s, sales remained weak in the latest quarter as most measures of the housing market remain sluggish. However, if interest rates come down and mortgages become more affordable, activity should return to the housing market which will boost Lowe’s business.”
7. SharkNinja, Inc. (NYSE:SN)
Analyst Upside: 23.25%
SharkNinja, Inc. (NYSE:SN) is a global technology and product design company with a portfolio spanning 31 household subcategories. It offers products across cleaning, food separation, cooking, home environment, and various other categories. The company operates through the Shark and Ninja brand assortments. The Shark brand offers a diverse assortment of categories, including robotic and handheld vacuums, steam mops, and dry/wet cleaning floor products. SharkNinja, Inc. (NYSE:SN) also offers beverage and cooking appliances such as coffee systems, air fryers, cookware, ovens, and much more.
The company is running on a strong model of profitability. It drove an adjusted net sales growth of 35% in fiscal Q3 2024. This growth was attributed to the company’s continual reinvestments in its growth initiative including competitive bidding, supplier diversification, and value engineering. Its strategic reinvestments are thus strengthening its moat and accelerating its pursuit of a growing addressable market.
SharkNinja, Inc. (NYSE:SN) also has a three-pillar growth strategy. This includes increasing its share in existing categories, entering new and adjacent categories, and international expansion. Entering new categories remains a key growth driver for the company, as it is committed to entering at least two new subcategories every year. It exceeded that goal in 2024 by entering four new subcategories, including frozen drink makers, fans, coolers, and skin care. The company ranks 7th on our list of the 10 best home appliance stocks to buy according to analysts.
Artisan Small Cap Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q3 2024 investor letter:
“Among our top Q3 contributors were Guidewire, Veracyte and SharkNinja, Inc. (NYSE:SN). SharkNinja is a leading household consumer products company. Its Shark brand focuses on the cleaning category (vacuums, mops, carpet cleaners, etc.) and, more recently, beauty (hair dryers, hair stylers, etc.). Its Ninja brand focuses on food preparation (blenders, food processors, ice cream makers, juicers, etc.) and cooking (indoor grills, ovens, toasters, cookers, air fryers, etc.). We believe a healthy combination of market share gains within existing categories, new category entries, and international expansion will drive growth. Shares rallied after reporting strong earnings results, including 31% revenue growth and 600bps of gross margin expansion.”
6. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Analyst Upside: 27.83%
Spectrum Brands Holdings, Inc. (NYSE:SPB) is a global manufacturer of branded home essentials and consumer products. It offers small household appliances, lawn and garden products, home pest control products, and others. The company manufactures, sells, and markets its products across Europe, the Middle East and Africa, North America, Latin America, and the Asia-Pacific regions.
It attained revenue growth in fiscal Q3 and Q4 2024 due to its continued investments in its business. The company upgraded its capabilities in innovation, commercial operations, marketing, and advertising. Its adjusted EBITDA grew by more than 20% in fiscal 2024, marking one of the best performances in the industry. Spectrum Brands Holdings, Inc. (NYSE:SPB) also has a strong balance sheet that gives it operational flexibility and strategic optionality. It plans to continue driving its organic operating performance and shareholder value by buying back its shares.
The company also has several strategic priorities set out for fiscal 2025 to continue building on its strong fiscal 2024 performance. It plans to continue its strategic brand-focused investments and expects to increase these investments primarily in marketing, R&D, and advertising to drive profitable top-line growth. Spectrum Brands Holdings, Inc. (NYSE:SPB) also plans to invest in its inventory to support sales growth in fiscal 2025 and boost e-commerce expansion, which was a significant source of growth for the company in fiscal 2024.
5. iRobot Corporation (NASDAQ:IRBT)
Analyst Upside: 41.94%
iRobot Corporation (NASDAQ:IRBT) is a global consumer robot company with a portfolio of smart home devices and home robots. Its portfolio features advanced technologies for cleaning, human-robot interaction, mapping and navigation, and physical solutions. Its offerings include the Braava family of automatic floor-mopping robots, the Clean Base Automatic Dirt Disposal, and others.
The company has been facing persistent market segments and competitive headwinds that affected its sell-through performance in fiscal Q3 2024. However, it expects to see a stabilization in its revenue trend over time. It is on track to exceed its operating expense targets, and is investing in areas that drive revenue and improve its foundation for profitable growth. iRobot Corporation (NASDAQ:IRBT) is also expanding its new product pipeline and announced the creation of iRobot Labs in July. iRobot Labs will serve as the company’s innovation center and represent its global initiative to boost its domestic product and software engineering talent.
In addition, the company has reduced its supply chain and R&D expenses by relocating certain non-core engineering and supply-chain functions. It announced an additional workforce reduction as part of its ongoing restructuring plans and is transitioning to a new product development paradigm with its contract manufacturers to facilitate growth. This new operating model is allowing the company to significantly increase its new product innovations with less than half the internal resources and around one-third the cost. Such transformations are expected to improve the company’s long-term performance and generate shareholder value. iRobot Corporation (NASDAQ:IRBT) ranks fifth on our list.
4. Traeger, Inc. (NYSE:COOK)
Analyst Upside: 56.90%
Traeger, Inc. (NYSE:COOK) sells, designs, and sources wood pellet-fueled barbecue grills. Its integrated platform offers various types of products, including gas griddles, grilling accessories, wood pellet grills, and others. The company also sells the pellets used to fire the grills and its private brand spices, rubs, sauces, and grilling accessories, including tools, MEATER smart thermometers, grill covers, and other ancillary items.
In addition, Traeger, Inc.’s (NYSE:COOK) flagship wood pellet grills are IoT devices that allow users to control, monitor, and program their grill through the company’s Traeger app. The company returned to its top-line growth in fiscal Q3 2024, experiencing a 4% revenue growth. This was attributed to the company’s strong performance in its growth category, which was 32% compared to the prior year. The company’s profitability also improved significantly in fiscal Q3 2024. Its gross margin expanded by 440 basis points, driven by its margin enhancement initiatives and other external factors. The growth of the company’s grille business reflects strong sell-through at retail during fiscal Q3 2024. This was because of Traeger, Inc.’s strategy to lead into promotions.
The company boasts strong brand health, as its research found that Traeger, Inc.’s (NYSE:COOK) unaided brand awareness increased by approximately 20% as of fiscal Q3 2024 compared to 2022. The company ranks fourth on our list of the best home appliance stocks to buy according to analysts.
3. Lifetime Brands, Inc. (NASDAQ:LCUT)
Analyst Upside: 94.59%
Lifetime Brands, Inc. (NASDAQ:LCUT) designs and sells branded kitchenware, tableware, and other home appliances and products. Its Kitchenware and Tableware product categories include products used to prepare, serve, and consume food. The Home Solutions category offers bath scales, thermal beverageware, weather and outdoor household products, and others. Its brand portfolio includes Farberware, KitchenAid, Taylor, KitchenCraft, Rabbit, Masterclass, and others.
The company delivered net sales of $183.8 million in fiscal Q3 2024, compared to $191.7 for the same period in the prior year. Its sales were affected by softness in end markets and delayed shipments.
Despite challenges in its operating environment, the company has a resilient business model in place that delivered steady gross margins in fiscal Q3 2024. It experienced strong market share growth across its categories in e-commerce during the quarter. Consolidated e-commerce sales increased to $86.3 million or 18.4% of total sales for the year-to-date period. US e-commerce sales also reported strong growth of 10.7% in fiscal Q3 year-over-year. The company ranks third on our list of the 10 best home appliance stocks to buy according to analysts.
2. Viomi Technology Co., Ltd. (NASDAQ:VIOT)
Analyst Upside: 156.85%
Based in China, Viomi Technology Co., Ltd. (NASDAQ:VIOT) operates an IoT Home platform and sells IoT-fitted smart home products. These include its flagship line of water purification systems, smart kitchen products, and other offerings. The company also offers complementary consumable products such as water purifier filters, water quality meters, and water filter pitchers.
The company is increasingly employing AI to provide remote real-time water quality and usage monitoring. It is further enhancing user experience by offering timely filter replacement reminders, one-click reordering, and DIY replacement options that lead to higher filter replacement. As of the end of the first half of 2024, around 5.9 million users used the Viomi AI home water solutions.
Viomi Technology Co. Ltd. (NASDAQ:VIOT) holds a competitive market advantage due to the continuous technological breakthroughs it delivers. It developed the tankless large-flux water purifier that offers fresh drinking water 24/7. It also expanded the water purifier usage from drinking to cooking and other activities. In addition, the company implemented ERO technology to offer sustainable water quality ranging from pure water to natural mineral water. It also unveiled the Viomi Kunlun Mineral AI Water Purifier with an innovative mineralizing filter technology that enables the sustained release of beneficial minerals.
The company’s strategic growth plans for the coming future include strengthening collaborations with its strategic partners, increasing its water purification products and domestic marketing penetration, and actively expanding in key overseas markets. Viomi Technology Co. Ltd. (NASDAQ:VIOT) takes the second spot on our list.
1. Aterian, Inc. (NASDAQ:ATER)
Analyst Upside: 254.17%
Aterian, Inc., (NASDAQ:ATER) is a technology-fitted consumer products company that sells an elaborate range of products across various categories, including kitchen appliances, home appliances, kitchenware, air quality appliances, essential oils, and many others. The company sells its products primarily in the US and derives most of its revenues from selling its offerings on Amazon. The company’s portfolio of six brands includes hOmeLabs, Pursteam, Photo Paper Direct, Healing Solutions, Mueller Living, and Squatty Potty.
The company delivered on its net revenue and adjusted EBITDA goals in fiscal Q3 2024. This positive performance was attributed to the company’s humidifiers from hOmeLabs, Pursteam steam products, and the impact of cost-cutting exercises implemented in fiscal Q1 2024. Its Pursteam brand is gaining popularity on Amazon, especially its Steam Irons and Steam Mops.
Due to its outside-in marketing and sales strategy, Aterian, Inc. (NASDAQ:ATER) is continuing to see strength in its marketing efficiencies. It is focusing its efforts on its reduced seller account footprint and core SKUs. The company is also seeing better-than-anticipated results in driving outside traffic to Amazon through its marketing initiatives, which are benefiting its product listing rankings and conversion metrics.
Overall, ATER ranks first among the 10 best home appliance stocks to buy according to analysts. While we acknowledge the potential of home appliance stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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