The 2023 hurricane season could get bad, we noted on May 3.
In fact, as noted by NextGov.com at the time, “After two years of relatively mild hurricane seasons, 2023 will see above-average hurricane activity, researchers predict. The forecasters expect the number of major hurricanes this year to be similar to 2017, which saw the extremely intense hurricanes Harvey, Irma, and Maria.”
We already have the third topical depression of the 2023 season, which is expected to become a hurricane in a few days, the U.S. National Hurricane Center just said.
It’s why we highlighted hurricane stocks just weeks ago, including:
Generac Holdings (GNCR)
GNRC is a leader in power generation equipment and other light-motor equipment for residential and industrial customers. The company is the market leader in home standby generators and the leading global manufacturer of mobile generators for industrial use. Beyond the physical damage to homes and businesses, one of the biggest inconveniences of a powerful storm is electrical outages. Better, the stock has a history of pushing higher, as hurricane season heats up.
Since our mention on May 3, GNRC ran from $114.74 to $126.86 so far.
Home Improvement Stocks
Home Depot (HD) and Lowe’s (LOW) historically stand to benefit from increased sales of plywood and other home improvement goods. This segment is “naturally positively exposed to preparation and recovery efforts,” says Morgan Stanley. These “typically see a boost in sales post-storm as damaged property is repaired.”
Since our mention on May 3, LOW ran from $205.31 to $214.76 so far. HD ran from $293.08 to $301.10, as well.
Xylem (XYL)
Xylem has a history of running higher in hurricane seasons, too. All as it works with “cities, counties and companies to create contingency plans that map out emergency response strategies and identify the required pumping equipment to react to natural disasters.”
Since May 3, XYL ran from $104.15 to $113.80 so far.
All we had to do was track hurricane season to see these kinds of gains.