With hurricane season nearing, it’s time to consider storm-prep stocks.
After all, according to The Weather Channel, the 2024 hurricane season could be one of the most active on record. “The outlook issued on Thursday calls for 24 named storms, 11 of which will become hurricanes and six of which will reach Category 3 status or stronger,” they noted. “That is well above the 30-year average tally for both hurricanes and storms, and also markedly above the tally of 20 storms, seven hurricanes and three Cat 3-plus hurricanes in 2023.”
That being said, keep an eye on hurricane-related stocks, such as:
Generac Holdings (GNRC)
GNRC is an $8.15 billion leader in power generation equipment and other light-motor equipment for residential and industrial customers.
It markets 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.
There are also 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.”
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.”