In this article, we will be looking at the 10 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.
5. Best Buy Co., Inc. (NYSE: BBY)
Number of Hedge Fund Holders: 33
Best Buy Co., Inc. (NYSE: BBY) is a retailer of technology products in the US and Canada, but the company’s stores also provide consumers with appliances like dishwashers, ovens, refrigerators, and other related products. It ranks 5th on our list of the best home appliance stocks to buy.
This June, Loop Capital kept its Buy rating on Best Buy Co., Inc. (NYSE: BBY) alongside its $150 price target on the shares. Analyst Anthony Chukumba commented that the company’s prices are competitive when compared to those of Amazon’s, and Best Buy Co., Inc. (NYSE: BBY) may also be set to benefit from companies returning to work in offices.
In the fiscal first quarter of 2022, Best Buy Co., Inc. (NYSE: BBY) had an EPS of $2.23, beating estimates by $0.81. The company’s revenue was $11.64 billion, up 35.91% year over year, beating estimates by $1.21 billion. Best Buy Co., Inc. (NYSE: BBY) has a gross profit margin of 22.55% and it has gained 29.49% in the past year.
By the end of the first quarter of 2021, 33 hedge funds out of the 866 tracked by Insider Monkey held stakes in Best Buy Co., Inc. (NYSE: BBY). The total value of their stakes was roughly $957 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $975 million.
4. Walmart Inc. (NYSE: WMT)
Number of Hedge Fund Holders: 58
Walmart Inc. (NYSE: WMT) is a retail and wholesale company that operates a range of stores in the US. Its stores also offer a wide variety of household appliances to consumers, among other products, and it ranks 4th on our list of the best home appliance stocks to buy.
Morgan Stanley analyst Simeon Gutman has commented on Walmart Inc. (NYSE: WMT) this July, stating that the stock looks “interesting” and has thus maintained his Overweight rating on Walmart Inc. (NYSE: WMT) shares alongside the firm’s $160 price target.
In the fiscal first quarter of 2022, Walmart Inc. (NYSE: WMT) had an EPS of $1.69, beating estimates by $0.48. The company’s revenue was $137.16 billion, up 2.61% year over year and beating estimates by $5.04 billion as well. Walmart Inc. (NYSE: WMT) has a gross profit margin of 25.10% and it has gained 8.32% in the past year.
By the end of the first quarter of 2021, 58 hedge funds out of the 866 tracked by Insider Monkey held stakes in Walmart Inc. (NYSE: WMT). The total value of their stakes was roughly $5.88 billion. This is compared to 70 hedge funds in the previous quarter with a total stake value of approximately $6.19 billion.
3. Lowe’s Companies, Inc. (NYSE: LOW)
Number of Hedge Fund Holders: 61
Lowe’s Companies, Inc. (NYSE: LOW) is a home improvement retailer operating in the US and internationally. The company also offers home appliances like microwaves, dishwashers, and related products at its stores and ranks 3rd on our list of the best home appliance stocks to buy.
This May, Truist raised its price target on Lowe’s Companies, Inc. (NYSE: LOW) from $185 to $217, while retaining its Buy rating on the shares. Analyst Keith Hughes commented that the upgrade came in light of robust Q1 earnings and 2021 guidance that seems positive for the company.
In the fiscal first quarter of 2022, Lowe’s Companies, Inc. (NYSE: LOW) had an EPS of $3.21, beating estimates by $0.62. The company’s revenue was $24.42 billion, up 24.13% year over year, beating estimates by $667.62 million. Lowe’s Companies, Inc. (NYSE: LOW) has a gross profit margin of 33.07% and the stock has gained 15.56% in the past 6 months and 21.77% year to date.
By the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in Lowe’s Companies, Inc. (NYSE: LOW). The total value of their stakes was roughly $5.17 billion. This is compared to 71 hedge funds in the previous quarter with a total stake value of approximately $5.19 billion.
Pershing Square Holdings Ltd, an investment management firm, mentioned Lowe’s Companies, Inc. (NYSE: LOW) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Lowe’s is a high-quality business with significant long-term earnings growth potential. We initiated our investment in the company in April 2018 largely because we believed that the hiring of a new high-caliber management team could dramatically improve the business and close the performance gap to its closest competitor, Home Depot. Marvin Ellison became CEO in July 2018, and immediately began working on a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities.
In 2020, Lowe’s experienced unprecedented demand driven by consumers nesting at home, higher home asset utilization and a reallocation of discretionary spend. Lowe’s earlier decision to modernize the company’s online offering allowed it to meet consumers’ surging demand. Further, its commitment to improve the company’s retail fundamentals allowed Lowe’s to showcase its enhanced merchandising, greater in-stock-levels, and excellent customer service. In the fourth quarter, the company completed 95% of its store layout resets which include a more intuitive shopping experience complete with a more Pro-centric layout (by “Pro” we refer to the professional tradesmen that perform repair and maintenance, remodeling and construction services). The company is also rolling out a new Pro CRM tool, which should improve Lowe’s Pro market share.
Management remains focused on a myriad of operational initiatives designed to improve the customer shopping experience and the company’s long-term earnings power. In the near-to-medium-term, these initiatives include improving Lowe’s omnichannel capabilities including simplifying search and checkout features, launching three additional ecommerce fulfillment centers, enabling faster mobile order fulfillment, standing up dedicated store fulfillment teams, rolling out touchless Buy-Online-Pick-Up-In-Store lockers to all U.S. stores by April 2021, and reimagining scheduling and modes of delivery for certain large-format order deliveries (notably, appliances). These initiatives are examples of Lowe’s “Perpetual Productivity Improvement” program which is designed to improve market share and profit margins.
Lowe’s is making important strategic investments to position the business to continue to thrive. The company’s long-term outlook implies significant opportunity for continued earnings appreciation and margin expansion as it executes its multiyear business transformation.”
2. Conn’s Inc (NASDAQ: CONN)
Number of Hedge Fund Holders: 12
Conn’s Inc (NASDAQ: CONN) is a Texas-based furniture and appliance store chain. The stock jumped in June after the company posted a whopping 70% increase in retail sales. Home appliance sales jumped 40% to reach $113.26 million, while consumer electronics sales increased by 6.3% in the period.
At the end of the first quarter, 12 hedge funds tracked by Insider Monkey held stakes in the company, up from 11 funds a quarter earlier.
1. The Home Depot, Inc. (NYSE: HD)
Number of Hedge Fund Holders: 68
The Home Depot, Inc. (NYSE: HD) is a home improvement retailer operating a wide variety of The Home Depot, Inc. (NYSE: HD) stores where consumers can buy a range of curated kitchen appliances for their houses. The stock ranks 1st on our list of the best home appliance stocks to buy.
This May, Credit Suisse raised its price target on The Home Depot, Inc. (NYSE: HD) from $319 to $330 with analyst Lavesh Hemnani commenting that the upgrade came about in light of strong results announced by the company for the first quarter. The firm has retained its Outperform rating on the shares as well.
In the fiscal first quarter of 2022, The Home Depot, Inc. (NYSE: HD) had an EPS of $3.86, beating estimates by $0.81. The company’s revenue was $37.50 billion, up 32.70% year over year, beating estimates by $2.87 billion. The Home Depot, Inc. (NYSE: HD) has a gross profit margin of 33.94% and has gained 17.12% in the past 6 months and 22.63% year to date.
By the end of the first quarter of 2021, 68 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE: HD). The total value of their stakes was roughly $4.35 billion. This is compared to 79 hedge funds in the previous quarter with a total stake value of approximately $4.92 billion.
You can also take a peek at 10 Construction Stocks Under $10 and 10 Best Construction Materials Stocks To Buy Now.
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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.
