Hurricane season is here, and the National Oceanic and Atmospheric Administration’s Climate Prediction Center is forecasting a 60% chance of an above-normal season.
Though hurricanes are certainly depressing and costly, there is a silver lining. The destruction caused by hurricanes is somewhat of a latent economic stimulus. The little-discussed truth is that the…
money spent to rebuild homes and businesses stimulates economic activity and growth.
If hurricane forecasts prove accurate, coastal areas will be inundated with powerful winds and rain in the months ahead, befitting the following four stocks: Home Depot (HD), Lowe’s Companies (LOW), Xylem (XYL), and Generac Holdings (GNRC).
Home Depot (HD)
Homeowners and business owners in hurricane-prone areas will head out to HD before the storms’ arrival and after the storm ends. HD sells just about everything property owners need to brace for the impact of hurricanes and bounce back in their aftermath. From building materials to home improvement items, home décor, lawn/garden products, and beyond, HD sells it all.
Review the analysts’ take on HD, and you will find that 15 analysts rate the stock a Buy and 6 rate it a Hold. None advise selling HD at this time.
With a reasonable forward P/E ratio of 27.01, HD could be worthy of your hard-earned investing dollars at its current trading price of $277.
Lowe’s Companies (LOW)
Whether those in hurricane-affected areas are looking to embrace DIY projects or have a company do the work for them, they will enjoy plenty of assistance form the home improvement gurus at LOW. As one of the top home improvement retailers globally, LOW provides services and products to residential property owners and commercial businesses.
The POWR Ratings reveal LOW has As in every POWR Component. LOW also has an industry rank of 2nd out of 66 Home Improvement & Goods stocks. Out of 21 analysts who have reviewed LOW, 20 rate it as a Buy, one rates it as a Hold, and zero advise selling. Add in the fact that LOW has a reasonably low forward P/E ratio of 22.52, and it is easy to understand why the investment professionals are so bullish on this stock.
Do not assume you missed LOW’s ride to the top. Though LOW is currently trading around its 52-week high, there is a chance it will continue to ascend while even more, fantastic quarterly earnings reports roll in as hurricane season plays out.
Xylem Inc. (XYL)
Water has the potential to prove quite problematic in the aftermath of a hurricane. Water must be tested, treated, and transported to ensure it is safe for use. Furthermore, wastewater must be…
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