As record high temperatures hit the United States, are air conditioning stocks rising in tandem? Yahoo Finance Markets Reporter Ines Ferre takes a look at some AC related stocks.
Video Transcript
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AKIKO FUJITA: Well, millions of Americans facing record-high temperatures. We should say not just Americans but those around the world. The sweltering heat however giving air conditioning-related stocks a bit of a boost. Here with the details is Yahoo finance's Inez Ferrandez.
INES FERRE: Yeah, Akiko. And those excessive heat warnings, the air quality warnings as well, that is giving AC stocks a boost. So let's take a look at some of them. I want to show you GE, which makes many products, but one of them also being air conditioners, they hit a 52-week high. That stock recently hit 52-week highs.
Carrier, a heating ventilation and air conditioning provider also hit a 52-week high, up 33% year to date. Lennox International, they make these smart thermostats for air quality, heating, cooling, also hitting a high. And Generac, that's a backup power provider, up 42% year to date. Generac recently received a price target raise at [? Piper ?] Sandler.
Look, these stocks are benefiting not just because we're in the heat of the summer right now and people are using their HVAC, et cetera, the HVAC market is expanding. As individuals, as businesses try and consume less energy, they are upgrading to newer units, newer devices.
And then you also have the tailwind of the Inflation Reduction Act which passed last year. So a lot of people think of that act as oh, EVs and solar panels. It's not just that. There were a lot of extensions on energy star tax rebates, which have been around for a while, but these were extended even more for individuals, for businesses, if they get new heat pumps, if they get new air conditioning units, et cetera. So that's what you're seeing with this momentum with these stocks.
SEANA SMITH: Certainly benefiting from what's played out over the last couple of months. All right, Ines Ferre, thanks.
