This article will provide you with 7 company stocks that benefit from severe weather events. When events like storms, hurricanes, or earthquakes occur, they usually have an impact on the population.
And this also influences the profit of companies, especially those that are in such areas affected by natural disasters.
7 Company Stocks that Benefit from Severe Weather Events
It can take months to a few years to recover from such natural disasters. That’s one of the reasons people, especially beginners fear buying and holding stocks. However, even during such periods, some companies still tend to do well.
These companies still thrive, make profits, and still benefit from such events. Below are ten company stocks that benefit from severe weather events
It’s common for power outages to occur when severe weather events like hurricanes or probably earthquakes occur. When there is no power, it will be difficult for the unaffected victims to preserve perishable food products and do lots more. Thus, this makes the demand for power supplies and home backup generators rise.
And usually, generator companies like Generac Holdings and Caterpillar, Inc. tend to sell more during severe weather events. This could increase their earnings and make them a more profitable company to hold stocks in such a period.
Severe weather events cause damage to both roads and buildings and this requires rebuilding efforts. During such times, engineering companies are in charge of construction, commissioning, maintenance, fabrication, and project management services.
Hence, popular engineering companies like Fluor and AECOM tend to make more profit during severe weather events. And you could also consider holding these stocks if to see if they are worth it.
Moreover, before, during, and even after a severe weather event occurs, battery sales tend to rise. People purchase batteries to power up their touch lights and radios. And these companies also tend to benefit during such periods.
Home Improvement Companies
Home improvement companies are brands that sell supplies like snow shovels, generators, and rebuilding materials. And these companies are usually involved with disaster relief funds. Home Depot (HD), Walmart (WMT), and Lowe’s are three major companies that could see an increase in profit during severe weather events.
Although insurance companies will payout claims after a natural disaster, they could also make a profit during natural disasters. If there is an increase in disaster claims from clients, insurance companies could raise their premiums. This could make the stock price rebound and bring more profits for insurance companies.
Water Treatment Companies
Water is one of the most valuable commodities and it’s essential for survival. During severe weather events, water may become polluted and access to clean water will increase. In such periods, the services of companies that test and treat water are always high in demand. One such company that plays a role in water treatment is Xylem, Inc.
Hotel chains could also see an increase in business during severe weather events. Usually, when a natural disaster occurs, people become physically displaced. This could lead to an increase in the number of people lodging in hotels and increasing profit for hotel chains.
What Stocks Do Well During Natural Disasters?
Some stocks that strive even during natural disasters include
- Fluor Corporation.
- Energizer Holdings, Inc.
- Smith & Wesson Brands, Inc.
- Lowe’s company.
- Smith & Wesson Brands, Inc.
- Denny’s Corporation.
- Energizer Holdings, Inc.
What Should I Invest in an Unstable Market?
If you want to invest money you can’t bear to lose, then you shouldn’t put it in the stock market. In an unstable market, it is best you invest your money in money market funds, Treasurys, Certificates of Deposit (CDs), consumer staples, technology, and gold.
What Are the Best Stocks to Buy Right Now?
The top ten stocks to buy right now are
- The Walt Disney Company
- Johnson & Johnson
- Costco Wholesale Corporation
- Palo Alto Networks, Inc.
- The Boeing Company
- Prologis, Inc.
What Stocks Do Well in an Inflation?
Some of the best stocks for inflation are energy, financials, consumer staples, precious metals, and property real estate investment trusts.
What Are the Best Low-Risk Investments to Make Right Now?
Some of the best low-risk investments to venture into right are
- Money market funds.
- Treasury bills, bonds, notes, and TIPS.
- Money market accounts.
- Fixed annuities.
- Short-term certificates of deposit (CDs).
- Preferred stocks.
- Corporate bonds.
- High savings account.
Are Stocks Good for Beginners?
Stocks are good investments that yield high profits. However, while they are great for beginners, the trading part could be a bit technical. Some of the best stocks for beginners are Amazon, Apple, Costco, Alphabet, Netflix, Disney, Microsoft, Nike, Pinterest, Shopify, and Spotify. Moreover, buy-and-hold stocks like mutual funds, ETFs, and index funds are a much better option for beginners.
What are the Best Stocks for Beginners to Buy with Little Money?
Some of the best stocks you can buy as a beginner if you have little money are
- Dropbox, Inc.
- Lucid Group, Inc.
- PPL Corporation.
- NiSource Inc.
- Kinder Morgan, Inc.
- Energy Transfer LP
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