Could Air Filter and Purifier Stocks Be a Good Buy as Climate Change Takes Hold?

Key takeaways

• Canadian wildfires have ravaged the country and sent smoke clouds over vast swathes of the U.S.
• Air filter and purifier stocks have done well this week as a result of the climate-related issues
• Whirlpool, Carrier Global and Trane Technology all saw modest lifts to their share prices

By now everyone’s heard about the Canadian wildfires, which are some of the worst fires the country has ever seen — and it’s only just the start of the season. The unexpected upside is that air purifier and air filter companies have performed well on the stock market this week as demand for their services and products has increased. Here are the details.

Want to help the environment and help boost your portfolio at the same time? Q.ai’s Clean Tech Kit is the answer. It uses AI to sift through the data, find the top-performing clean tech ETFs and then rebalance the Kit’s holdings accordingly to help you maximize your investment and look after the planet.

Download Q.ai today for access to AI-powered investment strategies.

Why are air purifier and filter stocks up?

The Canadian wildfires have put the spotlight on the devastating effect climate change is having on our planet. As record-breaking fires sweep through the country, the smoke has spread across the Northeast region in the U.S., forcing millions of people to stay instead as the air became hazardous to breathe.

It’s a reminder that as long as climate change is happening, we’ll see the economic landscape changing in tune with it. One example of this is the insurance industry, which may have to review its model for paying out in climate change-related fire situations.

Another potential upside is that otherwise “unsexy” companies in the air purification and system ventilation businesses become attractive stocks for investors as their product sales grow. If wildfires continue, these stocks could be a decent buy now.

The top names in the industry

There are a few key players in the industry that have done well this week. Domestic appliances manufacturer Whirlpool saw a 6% increase to its share price in the working week, though the stock dipped on Friday by 1.32% as news of clearer skies in the Northeast emerged.

Carrier Global is a ventilation systems company that saw a 2.64% boost to its share price this week as of Friday, but there are mixed signs from the stock. It acquired Viessmann Climate Solutions earlier this year for €12 billion in a boost to its European presence, but one Morgan Stanley analyst downgraded the stock because mergers take time to pay off.

Finally, Trane Technologies is a huge manufacturing conglomerate that counts ventilation systems as a core product, making it a lower-risk stock as it has many strands to the business. It’s seen a small 1% bump in its stock price but may be undervalued right now given its latest strong earnings report and acquisition of AL-KO Air Technology to expand its European and Asian presence.

The bottom line

As long as climate change and wildfires continue to be a problem for countries, we can expect the need for air purification and ventilation systems to grow. The above companies could be a good addition to your investment strategy, but make sure to do your own research — or let AI handle the investing work for you.

The AI revolution has already arrived in the investing sector, which has been using the tech for years — and now you can harness it with Q.ai’s Foundation Kits. An AI algorithm sifts through the data to find the top-performing assets for each Kit, which are themed on different topics and have varying risk levels to suit any investing appetite. The AI then rebalances each Kit’s holdings to help make the most out of every cent.

Download Q.ai today for access to AI-powered investment strategies.