Hurricane stocks, or more specifically, stocks that tend to do well during hurricanes, are easy money.
To be honest, all you need to do is watch the weather channel. When you see a big one approaching, buy a few hurricane stocks, such as Home Depot (NYSE: HD), Lowes (NYSE: LOW), and Walmart (NYSE: WMT). They typically tend to get a nice bump when those nasty Category 3s, 4s, and 5s come barreling in.
Although, to be sure, this is just an exercise in trading. Jumping in when the hurricane path is clear, and jumping out right around the time it hits.
Except for maybe my favorite hurricane stock, Generac (NYSE: GNRC).{Macro}
Hurricane Stocks are the New Normal
Generac is the largest manufacturer of backup generators in the United States. It’s also one of the largest suppliers of backup generators in Europe, Asia, and Australia. Boasting 2023 net sales of $4 billion, Generac has capitalized quite well on this year’s hurricane season.
Over the past month, Generac has climbed more than 24% — solely as a result of two back-to-back, crippling hurricanes. Check it out…
Generac is one of a handful of stocks I recommended earlier this year as a way to capitalize on the world’s move to climate adaptation. That is, investing in the products, technologies and services that will allow the world to adjust to the current and future effects of a warming climate.
These could include everything from water infrastructure and new food production technologies to AI-driven, wildfire detection systems and new building materials and construction protocols.
Now I realize some folks still want to debate whether or not climate change is a result of human activity or just a natural process. But I prefer to tune out all that bickering. The only thing I care about is profiting from climate adaptation. Which is happening.
Of course, if you don’t believe me, just ask the analysts at Bank of America who published a report which suggested that by 2026, the climate adaptation market will be valued at $2 trillion a year. That’s less than two years away.
There was also a fascinating report published by J.P. Morgan called: Adapting to a Warmer Planet. Why Climate Change Investing isn’t just about Decarbonization.
In it, JPM analysts make the economic case for climate adaptation, writing…
Climate change presents risks that are too big for investors to ignore. Global warming matters because of the adverse impacts that extreme weather events, increased humidity, heavy precipitation, prolonged periods of drought and gradually rising sea levels can cause to physical infrastructure, human well-being and the natural ecosystem on which our economy relies.
Since even ambitious mitigation will not eliminate all future climate risks, tackling climate change also requires a level of adaptation to those impacts that cannot be avoided. As a result, proactive efforts are now urgently needed to reduce exposure and vulnerability to extreme weather events and other risks arising from global warming.
I couldn’t agree more. And one of the ways to capitalize on these “proactive efforts,” is by owning shares of Generac.
Members of my Green Chip Stocks community got this alert from me back in April, where I recommended they buy shares of Generac. 6 months later, we’re up more than 32%. Not bad. And this one still has plenty of room to move, too.
Aside from generators, I’m also quite bullish on new battery storage technologies. The kind that will allow individual homeowners to keep the lights on, even when the grid goes down as a result of extreme weather events. I’m talking about everything from hurricanes and tornadoes to floods and massive blizzards. All of which, by the way, have increased in intensity as a result of a warmer climate.
These battery storage technologies are also used by industrial warehouses and power plants to ensure their operations are viable in the absence of grid reliability. Tesla has actually made a fortune by providing these stationary battery systems for power plant operators in Japan and Australia.
Estimates show the global battery energy storage market growing from a valuation of $18.2B in 2023 to $114B by 2032. That’s a CAGR of 22.6%.
But here’s the rub…
Today’s stationary battery storage systems rely on technologies that are constantly changing and evolving. Which is why we’re putting our chips, not on the batteries that exist today, but instead, the batteries that will exist ten years from now. Because that, dear reader, is where the real money is.
That’s also the reason, we’re now investing in this new high-tech materials company that’s providing what the BBC calls, a “miracle material” for batteries.
It’s actually rolling out its own patented batteries right. It can charge up to 70 times faster than the batteries we use today, and they last three times longer than the current lithium batteries on the market.
My good friend and colleague Alex Koyfman, recently published a white paper on this company. It outlines exactly how the technology works, and how you can personally buy it on the cheap today.
Here’s the bottom line. You can make a lot of money in this next generation of battery storage technologies. So you might as well make it.
To a new way of life and a new generation of wealth…
Jeff Siegel
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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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