With the 2020 hurricane season under way, we could see another active year. In fact, according to the National Oceanic and Atmospheric Administration (NOAA), we could see up to 19 storms this year.
At the same time, we can actually profit from hurricanes, as some companies predictably see a jump in costs as they repair businesses. Other companies generate more business as they supply the products and services needed in the rebuilding effort.
Here are some of the top ones to keep in mind.
Generac Holdings (GNCR)
GNRC is a $6.9 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. Beyond the physical damage to homes and businesses, one of the biggest inconveniences of a powerful storm is electrical outages.
Home Improvement Stocks
Typically, investors bid up Home Depot (HD) and Lowe’s (LOW) since they 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.”