With hurricane season nearing, it’s time to consider storm-prep stocks, we said in late April.
We added, 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’s 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.”
Along with it, we highlighted stocks, like Generac Holdings (SYM: GNCR), which ran from $127.50 to a high of $155 after that mention. Even Xylem (SYM: XYL) popped from $130 to $145.
Both could push even higher. All thanks to worsening hurricane season forecasts.
Most recently, the National Oceanic and Atmospheric Administration called for a more active than normal season — thanks in large part to the off-the-charts high temperatures in the Atlantic Ocean, as noted by the Miami Herald.
“NOAA is predicting that 17 to 25 named storms could form this year, with eight to 13 powering up into hurricanes and four to seven of those reaching major hurricane status, Category 3 or higher. That’s above the average: 14 named storms, 7 hurricanes and 3 major hurricanes.”
“In fact, they’re the highest ever forecast by the federal agency. In 2020, NOAA had predicted the highest number of storms of all time. That season wound up with 30 named storms, 14 of them growing into hurricanes,” they added.
In addition to Generac and Xylem, investors may want to invest in home retailers, too.
Home Depot (SYM: HD) and Lowe’s (SYM: 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.”
