4 Top Stocks to Pick From a Promising Pollution Control Industry

Industry Overview - The Zacks Pollution Control industry is expected to grow due to strong demand for air pollution control products driven by rising greenhouse gas emissions and health risks associated with it [1] - Stringent regulations and emission standards globally are anticipated to further boost demand for industry participants [1][5] - The industry includes companies providing filtration systems, waste management solutions, energy recovery devices, and other products across various sectors [3] Major Trends - There is a strong demand for air pollution control systems due to rapid urbanization and increased greenhouse gas emissions from the industrial sector [4] - Growing public awareness of health risks related to air pollution is contributing to market growth [4] - The expansion of infrastructure projects in developing countries is increasing the demand for pollution abatement technologies [4] - Strict government regulations aimed at reducing ozone layer depletion are expected to sustain demand for pollution control equipment [5] - The rise of alternative energy sources is negatively impacting the demand for industrial emission-abatement products [7] Current Industry Performance - The Zacks Pollution Control industry currently holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 Zacks industries, indicating solid near-term prospects [8] - Over the past year, the industry has underperformed compared to the S&P 500 and the broader Industrial Products sector, declining by 3.8% while the S&P 500 increased by 19.8% [11] Valuation Metrics - The industry is currently trading at a forward P/E ratio of 17.69X, which is lower than the S&P 500's 21.53X and the sector's 18.36X [13] Key Companies - Energy Recovery, Inc. (ERII): Focuses on energy efficiency technology solutions for water desalination, with strong growth prospects in desalination and industrial wastewater sectors [15][16] - Donaldson Company, Inc. (DCI): Engaged in manufacturing filtration systems, benefiting from strong aftermarket demand and performance in aerospace and defense markets [18][19] - Atmus Filtration Technologies Inc. (ATMU): A leading designer of filtration solutions, expected to grow due to effective pricing and a strong global presence [21][22] - CECO Environmental Corp. (CECO): Provides solutions in industrial air quality and water treatment, with growth supported by strategic acquisitions and rising demand for air and ventilation products [24][25]