Our hearts go out to everyone affected by the Hurricane.
If you are impacted, we wish you all the very best, and hope you’re okay.
The Storm May Even Impact Stocks
While I’m not always comfortable answering this question, I’ve received it quite often.
“Ian, are there stocks that will typically run in Hurricanes like Dorian?”
Anyone who has weathered a hurricane will tell you just how disruptive and damaging they can be. The same holds for stocks, some of which — due to the industry — can see sizable impact, too. In fact, some of the top stocks to watch during most of these seasons, include:
Generac Holdings (GNCR)
GNRC is a $4.8 billion 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.
Storms in 2018 sent this stock from $45 to $68 before pulling back post-hurricane-season.
Home Improvement Stocks
Investors also historically bid up Home Depot (HD), Lowe’s (LOW) and Lumber Liquidators (LL) since they historically stand to benefit from increased sales of plywood and other home improvement goods. These companies “typically see a boost in sales post-storm as damaged property is repaired,” says Morgan Stanley, as quoted by MarketWatch.
In 2018, for example, Lowe’s exploded higher on an active season full of 15 storms.
Xylem Inc. (XYL)
Xylem is another hurricane stock to keep an eye on. It’s a leader in water services, including testing, treating and transportation. When a massive storm hits, floodwaters can overwhelm public drinking water and mean large government contracts for making the water safe again. The stock also ran higher with an active 2018 storm season.
These are just a few stocks to keep in mind as hurricane season gets underway.
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