The 2017 Atlantic hurricane season was one of the worst on record, thanks to the infamous trio of Harvey, Irma and Maria.
Harvey flooded Houston with more than four feet of rainfall as it made landfall August 25. Irma battered the Caribbean before coming ashore in the Florida Keys on September 10. And Maria inflicted heavy devastation on Puerto Rico, destroying homes and much of the infrastructure on the island when it came ashore on September 20.
Mother Nature was unkind last year, causing $250 billion of damage.
This week, Hurricane Florence is churning towards the east coast of the U.S. with South Carolina in its path. Folks up and down the densely populated coast were told to be ready for the worst. Forecasting models showed it could unload a foot or two of rain in places, causing devastating inland flooding. Forecasters also warned of a rising threat of life-threatening storm surge, along with the damage of a hurricane’s high winds.
In every crisis, there’s opportunity. Hurricanes are no exception.
Some companies will 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, including these:
Generac Holdings (GNRC)
GNRC is a $3.65 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. In 2017, GNRC exploded from $37 to $53 during hurricane season.
Polar Power Inc. (POLA)
Small cap player, Polar Power is another generator stock that has seen interest in hurricane season. In 2017, the stock jumped from $4.25 to a high of $6.35 before pulling back.
Home Improvement Stocks
As two major hurricanes swirl in the Atlantic Ocean, investors are also bidding 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. All three stocks exploded with the intensity of the 2017 hurricane season.
Xylem Inc. (XYL)
XYL is another one to own. It’s a global leader in water services, including testing, treating and transportation. When a massive storm hits, floodwaters can overwhelm public drinking water facilities and that can mean large government contracts for making the water safe again.