Home Depot stock will soon be getting a lot of media coverage.
Why?
Because every year, around the start of hurricane season, all the mainstream media financial analysts remind us about all the business Home Depot (NYSE: HD) will do as coastal cities and towns prepare for those nasty Category fives. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
And indeed, history has shown us that when a big one comes rolling in, Home Depot stock tends to get a nice bump. But it’s really only good for traders, as those quick spikes in share prices tend to correct rather quickly.
And given that those spikes don’t typically breach double digits for any reasonable period of time, I’m not sure it’s worth it to chase Home Depot stock during hurricane season. There are just much better ways to play hurricanes and other catastrophic weather events.
Take Generac (NYSE: GNRC), for instance.
Generac is the largest manufacturer of backup generators in the United States, and one of the largest suppliers of backup generators in Europe, Asia, and Australia. Boasting 2023 net sales of $4 billion, Generac is capitalizing on a very real supply/demand imbalance.
Indeed, hurricanes are good for Genearc’s business. But beyond severe weather events, there’s also the deterioration of supply reliability as a result of…
- One-way systems that are prone to outages
- Underinvestment in critical infrastructure
- Increasing intermittency
Couple that with an acceleration of demand growth, particularly as a result of the electrification of transportation, HVAC and appliances, and the stars align for Generac.
Two other stocks that can also benefit from an increased demand in generators as a result of extreme weather events are Polar Power (NASDAQ: POLA) and Caterpillar (NYSE: CAT).
Engineering and water treatment companies also do well during hurricane season. Some of these include…
- AECOM (NYSE: ACM)
- Fluor Corp. (NYSE: FLR)
- Xylem (NYSE: XYL)
- Advanced Drainage Systems (NYSE: WMS)
- Badger Meter (NYSE: BMI)
- Pentair (NYSE: PNR)
Now this doesn’t mean you should completely ignore Home Depot stock. As I mentioned, the company always does well during hurricane season. And as extreme weather events continue to become the norm, Home Depot will absolutely benefit.
Home Depot Stock for the Win
While I maintain that Generac is probably the best stock to play the hurricane season, Home Depot is no slouch, either. It’s a solid long-term investment that offers a generous 2.7% dividend and has delivered steady growth for the past ten years.
The stock is also currently trading at a roughly 10 percent discount. So indeed, there is opportunity with Home Depot. But if you’re looking for more than a safe 10% gain, consider this new energy play that Sam Altman, Bill Gates and Elon Musk have already invested $3 billion in.
It’s not a typical energy play, though. Instead, this is specifically designed to support the rapid growth of the AI market. A market, by the way, that turned Nvidia (NASDAQ: NVDA) into a $2.3 trillion juggernaut. That’s trillion — with a “T.”
It is a bit of a niche play. But if Elon Musk, Bill Gates and Sam Altman are in for billions, you better believe I’m wetting my beak on this one, as well. And you should, too.
Which is why I’m including a link to this special report that explains exactly why three of the richest men in the world have already ponied up small fortunes to get a piece of this thing. And more importantly, how you can get some of this action for yourself, right now. To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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