Severe weather can have a major impact on stock prices, both positively and negatively, depending on the industry. Here are 8 stocks that benefit from severe weather events:
- Home Improvement Retailers: Severe weather often results in an increase in home improvement sales, making companies such as Home Depot and Lowe’s great investments in this type of situation.
- Generators: With extreme temperatures or inclement weather comes an increased need for backups systems like generators. Companies such as Briggs & Stratton and Generac Holdings can benefit from this type of unpredictability.
- Reinsurance: Reinsurance companies like Swiss Re can be a great way to invest when facing the unpredictability that comes with severe weather events as they are able to provide protection against losses caused by catastrophes.
- Roofing Suppliers: When severe weather hits, it often leads to damage to roofs which are typically replaced with new materials, making roofing suppliers like Beacon Roofing Supply beneficial investments in these cases.
- HVAC Equipment Manufacturers: In warmer climates, more heating and cooling is needed, resulting in higher demand for HVAC equipment manufacturers like Trane Technologies and American Standard Brands Services Inc.
- Winter Clothing Retailers: During cold snaps or winter storms, retailers of winter clothing such as Columbia Sportswear Co tend to see an increase in demand for their products which makes them prime candidates for investors looking to capitalize on extreme temperatures without incurring too much risk.
- Snow Removal Services: Companies specializing in snow removal services such as Brink’s Company can benefit greatly during heavy snowfall periods as many municipalities require them to clear large amounts of snow from sidewalks and streets each year. 8 Electricity Providers: Electricity providers such as Southern Company may find themselves experiencing higher than normal demand during colder months due to people using more electricity for heating during these times which allows these companies to optimize their profits accordingly.
Severe weather events, such as extreme temperatures or inclement weather conditions, can have a major influence on stock prices. Home improvement and generator companies, as well as reinsurance firms, roofing suppliers, HVAC equipment manufacturers, winter clothing retailers, snow removal services, and electricity providers are just some of the investments that can benefit from these unpredictable circumstances. Investors looking to capitalize on severe weather events should analyze the associated performance and risk before committing capital to any of these stocks. It is important to remember that stock prices can remain volatile even after an event has passed.