In this piece, we will take a look at ten best hurricane and natural disaster stocks to buy now.
The 2024 hurricane season is shaping up to be a highly active one, especially in the North Atlantic. Forecasts suggest that the number of tropical cyclones this year could exceed the long-term average. Although it’s difficult to predict how many storms will make landfall and where they will hit, a higher number of storms increases the chances of multiple landfalls, posing a significant risk to the Gulf of Mexico and Caribbean Sea regions.
Leading research institutes expect approximately 23 named cyclones in the North Atlantic this year, with 11 potentially developing into hurricanes. Of these, five could become severe hurricanes with wind speeds exceeding 110 mph. These estimates are considerably higher than the long-term average observed between 1950 and 2023, which was 12 named storms, 6 hurricanes, and nearly 3 severe hurricanes each season.
Sea surface temperatures in the tropical North Atlantic are currently at record highs, between 0.5 and 1.0°C above the historical average, creating conditions favorable for hurricane development. Furthermore, the natural climate oscillation ENSO (El Niño/Southern Oscillation) is expected to shift to a La Niña phase. This shift typically reduces high-altitude wind shear, which in turn makes it easier for tropical cyclones to develop and intensify.
Given these factors, the likelihood of severe hurricanes making landfall this season is heightened. This means that companies involved in infrastructure, construction, insurance, and emergency response could see increased demand for their products and services. Hurricanes not only cause billions of dollars in property damage but also disrupt various sectors, from utilities and energy to real estate and transportation. Thus, investing in companies that specialize in disaster recovery, property restoration, and related services could be a strategic move.
In this article, we will explore the ten best hurricane and natural disaster stocks to buy now. These companies are well-positioned to benefit from the potential increase in hurricane activity and the demand for services that follow in the wake of natural disasters. Whether through providing emergency equipment, offering insurance coverage, or assisting in rebuilding efforts, these stocks could present an opportunity for investors looking to hedge against the financial impacts of natural disasters.
Sources like Munich Re, the World Meteorological Organization (WMO), and the International Labour Organization (ILO) have provided valuable insights into the 2024 hurricane season, highlighting the increased risks and potential economic impacts. With that in mind, let’s dive into our list of the best stocks to consider for this hurricane season.
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Our Methodology
The companies featured in this list are known to experience increased demand following hurricanes and natural disasters. To provide prospective investors with valuable insights, we’ve also highlighted key business fundamentals and analyst ratings for these stocks. Additionally, we reviewed data from approximately 912 elite hedge funds tracked by Insider Monkey during the second quarter of 2024 to determine hedge fund ownership for each company. From this dataset, we selected the top ten stocks most favored by institutional investors and ranked them in ascending order based on the number of hedge funds holding stakes in these firms as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. NOV Inc. (NYSE:NOV)
Number of Hedge Fund Holders: 29
NOV Inc. (NYSE:NOV), a global leader in the design and manufacturing of systems and products for oil and gas drilling, as well as industrial and renewable energy sectors, deserves a spot among the top hurricane and natural disaster stocks due to its essential role in providing resilient infrastructure and technologies. The company’s robust portfolio includes drilling equipment, production technologies, and hydraulic fracture stimulation tools, making it a key player in supporting energy production and offshore development, which are critical during and after natural disasters when energy stability is crucial.
For the second quarter of 2024, NOV Inc. (NYSE:NOV) posted strong financial results, highlighting the company’s growth and operational resilience. The firm reported revenues of $2.22 billion, an increase of 6% compared to the same period last year. The company also achieved a net income of $226 million, or $0.57 per diluted share, which represented an impressive year-over-year increase of $0.18 per share. NOV Inc. (NYSE:NOV) EBITDA improved by 15% to reach $281 million, with EBITDA margins expanding to 12.7%, driven by cost reductions and improved revenue mix.
NOV Inc. (NYSE:NOV) success is largely attributable to its strategic focus on high-margin international and offshore markets. The company witnessed a surge in bookings for flexible pipe solutions for deepwater FPSO developments and well intervention equipment for both offshore and international markets. The book-to-bill ratio for the quarter was nearly 180%, indicating strong demand for NOV Inc. (NYSE:NOV) offerings. Additionally, NOV Inc. (NYSE:NOV) cost-saving initiatives have resulted in $75 million of annualized savings, positioning the company to sustain profitability even amid challenging North American market conditions.
The company has also implemented advanced AI solutions to enhance operational efficiency across its manufacturing facilities, optimizing capacity and reducing production costs. This strategic utilization of technology has bolstered NOV Inc. (NYSE:NOV) competitive edge in the energy equipment sector.
As of Q2 2024, 29 hedge funds hold positions in NOV Inc. (NYSE:NOV), slightly down from 33 in the previous quarter, reflecting a modest dip in institutional interest. However, with stable cash flows, strong EBITDA margins, and promising international growth prospects, NOV Inc. (NYSE:NOV) remains a compelling investment in the energy sector, particularly for those looking to benefit from the resilience and recovery associated with hurricane and natural disaster impacts.
09. Fluor Corporation (NYSE:FLR)
Number of Hedge Fund Holders: 30
Fluor Corporation (NYSE:FLR) is a global engineering, procurement, and construction company that provides services across a range of industries, making it an ideal addition to a list of hurricane and natural disaster stocks. The company’s expertise in project management, asset integrity, and operation and maintenance services enables it to respond effectively to infrastructure and energy needs, which often arise following natural disasters. Fluor Corporation (NYSE:FLR) diverse segments, such as Energy Solutions, Urban Solutions, and Mission Solutions, allow it to tackle complex projects, making it well-positioned to benefit from increased spending on disaster recovery and energy infrastructure projects.
In the second quarter of 2024, Fluor Corporation (NYSE:FLR) reported strong financial results, with revenues reaching $4.2 billion and new awards totaling $3.1 billion. The company’s total backlog stands at $32.3 billion, reflecting robust demand for its services across various sectors. The Urban Solutions segment, which focuses on infrastructure and advanced technologies, reported a segment profit of $105 million, demonstrating increased execution activities on multiple life sciences and infrastructure projects. This segment’s new awards rose to $2.4 billion, compared to $2.3 billion in the prior year, indicating the strong potential for long-term growth in this area.
Fluor Corporation (NYSE:FLR) strategic shift to an asset-light business model has enabled it to maintain high service margins, which have remained in the 20% range for its traditional EPCM businesses this year. Additionally, the company’s margin on new awards continues to outpace existing backlog by over 150 basis points, showcasing its effective pricing and project execution strategies.
Fluor Corporation (NYSE:FLR) Mission Solutions segment, which is critical in providing disaster response services, secured several new awards, including $63 million in task orders for the Federal Emergency Management Agency (FEMA). This positions the company as a key player in disaster recovery efforts, further solidifying its place among top natural disaster stocks.
Moreover, the number of hedge funds holding Fluor Corporation (NYSE:FLR) increased to 30 in Q2 2024, up from 28 in the previous quarter, indicating rising institutional interest. This increased confidence, combined with Fluor Corporation (NYSE:FLR) strong financial performance and expertise in disaster management and recovery, makes the stock an attractive investment option for those seeking exposure to hurricane and natural disaster-related industries.
08. AECOM (NYSE:ACM)
Number of Hedge Fund Holders: 32
AECOM (NYSE:ACM) is a global provider of infrastructure consulting services, operating across three main segments: Americas, International, and AECOM Capital. The company offers a broad range of services, including planning, architectural and engineering design, construction management, and investment in real estate projects. Given its involvement in infrastructure and disaster management projects, AECOM (NYSE:ACM) is a key player in the hurricane and natural disaster segment, making it an ideal inclusion in this list of the best hurricane and natural disaster stocks to buy now.
AECOM (NYSE:ACM) financial performance in the third quarter of 2024 was exceptional, demonstrating strong growth and resilience. The company reported an 8% year-over-year increase in net service revenue (NSR) and a 16% rise in adjusted EBITDA, reflecting the company’s ability to capitalize on a robust pipeline of opportunities in critical markets like water and transportation. Furthermore, adjusted EPS increased by 23% for the quarter, reinforcing the company’s solid financial foundation.
One of the key highlights of the earnings report was the company’s strong cash flow generation, with free cash flow up by 32% year-to-date. This financial strength enables AECOM (NYSE:ACM) to continue allocating resources toward share repurchases, investments in high-return growth opportunities, and maintaining dividend payments. The company has repurchased $200 million worth of stock since the end of the second quarter, illustrating its commitment to shareholder value.
AECOM (NYSE:ACM) backlog, which is at a record high, provides significant visibility into future revenue streams and supports the company’s growth outlook. The firm’s pipeline in its core markets is robust, with a 20% growth in its program management pipeline and a 45% increase in its water-related pursuits. This visibility and growth potential underpin AECOM (NYSE:ACM) updated fiscal 2024 guidance, with the company now expecting 21% adjusted EPS growth at the midpoint.
As of Q2 2024, the number of hedge fund holders of AECOM (NYSE:ACM) was 32, a slight decline from 34 in the previous quarter. However, this minor fluctuation does not overshadow the company’s strong fundamentals and strategic positioning, making AECOM (NYSE:ACM) a solid investment opportunity in the hurricane and natural disaster sector.
07. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 35
Generac Holdings Inc. (NYSE:GNRC) is a leading provider of energy technology products and solutions, making it an essential addition to any list of hurricane and natural disaster stocks. The company specializes in a wide range of products, including residential standby generators, portable generators, energy storage solutions, and backup power systems for both residential and commercial applications. With the increasing frequency of severe weather events, Generac Holdings Inc. (NYSE:GNRC) offerings are positioned to see continued demand as consumers and businesses alike seek to protect themselves from prolonged power outages.
In the second quarter of 2024, Generac Holdings Inc. (NYSE:GNRC) reported revenues of $998 million, which were flat year-over-year. Residential product sales rose by 8% due to robust demand for home standby generators, driven by increased power outage activity following major storms like Hurricane Beryl. Although commercial and industrial (C&I) sales declined by 10%, mainly due to softness in telecom and rental markets, Generac Holdings Inc. (NYSE:GNRC) remains optimistic about long-term growth opportunities. The company’s strategic focus on operational execution and expanding market share within its North American industrial distributor network has been pivotal in maintaining its industry leadership.
Despite missing earnings expectations for the quarter, with an EPS of $0.975 compared to the forecasted $1.24, Generac Holdings Inc. (NYSE:GNRC) gross and adjusted EBITDA margins expanded significantly from the prior year, driven by a favorable sales mix and reduced input costs. The company’s dealer network also grew to approximately 8,900 residential dealers, reflecting a strong distribution model and enhanced market penetration. Moreover, home consultations saw sequential growth, further supported by Generac Holdings Inc. (NYSE:GNRC) initiatives to improve sales lead conversion and optimize lead nurturing practices.
Generac’s recent $35 million investment in Wallbox to develop integrated EV charging solutions further strengthens its position in the growing residential energy management market. In addition, Generac Holdings Inc. (NYSE:GNRC) is expanding its market presence through strategic acquisitions like SunGrid Solutions, enhancing its capabilities in energy storage for C&I applications. The number of hedge funds holding Generac increased to 35 in Q2 2024, compared to 33 in the previous quarter, highlighting increased investor interest.
Overall, Generac Holdings Inc. (NYSE:GNRC) is poised to capitalize on the rising demand for energy resiliency solutions in response to more frequent and severe weather events, making it a strong contender among hurricane and natural disaster stocks to consider for long-term growth.
Diamond Hill Capital Mid Cap Strategy stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its first quarter 2024 investor letter:
“Though valuations have increased, we continue identifying high-quality companies we believe the market is overlooking. We accordingly initiated four new positions in Q1: Generac Holdings Inc. (NYSE:GNRC), Diamondback Energy (FANG), Johnson Controls International and Humana. Generac Holdings is a leading energy technology solutions manufacturer with a dominant position in residential home standby power. With its strong position in home standby and diverse energy solutions offerings, Generac is well-positioned for growth moving forward as increasing electricity usage and electrical grid instability drive demand for its products. Shares have been pressured over the last couple years as the company has faced inventory-related headwinds and soft near-term demand — giving us an opportunity to initiate a position at what we believe is a compelling discount to intrinsic value.”
06. Copart, Inc. (NASDAQ:CPRT)
Number of Hedge Fund Holders: 50
Copart, Inc. (NASDAQ:CPRT) is a leading provider of online vehicle auctions and remarketing services across multiple regions, including the United States, Canada, and the United Kingdom. As a company deeply integrated in the insurance and vehicle salvage industry, Copart, Inc. (NASDAQ:CPRT) is well-positioned to benefit from the rising frequency of natural disasters and hurricanes, which often lead to higher total loss vehicle rates. This makes the stock a strategic addition to a list of hurricane and natural disaster-related stocks.
The company’s wide range of services, such as vehicle inspections, transportation, title processing, and salvage estimation, are indispensable for insurance companies when processing claims for vehicles damaged due to natural disasters. Copart’s Title Express service, which streamlines the title procurement process for insurers, has gained significant traction, demonstrating its critical role in the insurance ecosystem. During the fourth fiscal quarter of 2024, Copart reported a 6% year-over-year increase in insurance vehicle volumes and a 20.4% increase in non-insurance volume growth, highlighting the company’s ability to grow across various segments.
Although Copart, Inc. (NASDAQ:CPRT) missed its earnings expectations in the recent quarter—reporting earnings per share (EPS) of $0.33 against estimates of $0.36—the company’s fundamentals remain robust. Copart’s total revenue for fiscal 2024 was $4.2 billion, representing a 10% year-over-year growth. The company’s international business also saw substantial expansion, with unit growth of 17% for Q4 and 21% for the full year. Meanwhile, U.S. service revenue increased by 10% for the year, supported by strong growth in both insurance and non-insurance units.
Additionally, Copart, Inc. (NASDAQ:CPRT) has become a popular choice among institutional investors, with hedge fund interest in the stock increasing to 50 holders in Q2 2024, up from 41 in the previous quarter. This reflects growing investor confidence in the company’s long-term potential. The expansion of its real estate portfolio and strategic partnerships, such as its collaboration with Purple Wave, also position Copart to continue capitalizing on industry trends and natural disaster-related surges in vehicle volumes. Overall, Copart, Inc. (NASDAQ:CPRT) ability to provide critical services to the insurance industry during natural disasters, combined with its solid financial performance and rising hedge fund interest, make it a compelling stock to consider in this category.
Conestoga Capital Advisors Mid-Cap Strategy stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its first quarter 2024 investor letter:
“Copart, Inc. (NASDAQ:CPRT): CPRT is the leading provider of salvage auctions in the US, Canada and the UK. The company reported a solid quarter of unit volume improvement and continued margin gains. We believe favorable trends should improve as lower used car prices will drive a higher total loss rate, which results in more damaged vehicles going to Copart auctions.”
05. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 60
CVS Health Corporation (NYSE:CVS) is a diversified healthcare company providing health solutions across the United States. It operates through three main segments: Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. With its expansive presence and integrated healthcare offerings, CVS Health Corporation (NYSE:CVS) is a robust player in the healthcare industry, making it a relevant inclusion in the list of the best hurricane and natural disaster stocks to buy. The company’s wide array of healthcare services and extensive retail presence position it well to respond to increased demand during natural disasters, where access to healthcare, medications, and essential supplies becomes critical.
In the second quarter of 2024,CVS Health Corporation (NYSE:CVS) beat analyst expectations by posting earnings per share (EPS) of $1.83 compared to an estimated $1.73. This performance highlights the company’s solid financial standing, supported by revenues of over $91 billion for the quarter and $8 billion in operating cash flow for the first half of 2024. Additionally, CVS Health Corporation (NYSE:CVS) has raised its full-year 2024 adjusted EPS guidance to a range of $6.40 to $6.55, reflecting its confidence in continued business strength despite challenges in certain segments.
CVS Health Corporation (NYSE:CVS) core business segments reported strong performance. The Health Services segment generated revenues of more than $42 billion and delivered $1.9 billion in adjusted operating income. The company also expanded its pharmacy market share to a record 27.2%. This growth is partly attributed to the successful launch of CVS CostVantage and the implementation of its biosimilar strategy, which delivered approximately $400 million in net savings for clients. Moreover, CVS Health Corporation (NYSE:CVS) focus on innovative pharmacy models and cost management strategies, like TrueCost, positions it well for long-term profitability.
The company also saw a rise in hedge fund interest, with 60 hedge funds holding stakes in CVS Health Corporation (NYSE:CVS) as of Q2 2024, compared to 54 in the previous quarter, indicating growing confidence from institutional investors. With strong fundamentals, increased market share, and a diversified business model, CVS Health Corporation (NYSE:CVS) is well-positioned to continue thriving and supporting communities during natural disasters, making it a compelling stock for investors seeking stability in uncertain times.
Ariel Global Fund stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q2 2024 investor letter:
“American healthcare company, CVS Health Corporation (NYSE:CVS), also declined following disappointing earnings results and a subsequent reduction in full year guidance. The miss was primarily due to increased utilization of Medicare Advantage plans and weakness in the health services segment driven by the loss of a large client and continued pharmacy client price improvements. In response, management reiterated its focus on improving margins and enhancing its positioning in Medicare Advantage. CVS believes the program can remain an attractive business for Aetna and CVS Health over time and will construct its bid for 2025 as a multi-year repricing opportunity across plan level benefits. Meanwhile, CVS continues to return capital to shareholders through dividends and a recent accelerated share repurchase transaction.”
04. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 62
Lowe’s Companies, Inc. (NYSE:LOW), a leading home improvement retailer in the United States, has established itself as a go-to resource for construction, maintenance, repair, remodeling, and decorating products. With a broad array of offerings, ranging from appliances and lawn and garden supplies to tools and building materials, Lowe’s Companies, Inc. (NYSE:LOW) serves both professional customers and homeowners alike. The company’s strong position in the market, coupled with its resilience in navigating challenging economic conditions, makes it a compelling addition to the list of hurricane and natural disaster stocks to consider.
In its Q2 2024 earnings call, Lowe’s Companies, Inc. (NYSE:LOW) reported an impressive earnings per share (EPS) of $4.10, exceeding analyst expectations of $3.97. Despite facing a 5.1% decline in comparable sales year-over-year, Lowe’s demonstrated resilience through robust online sales growth of 2.9% and strong performance in the Pro segment, reflecting a strategic shift towards professional customers. The company’s proactive approach to expense management and operational efficiency, supported by its Perpetual Productivity Improvement (PPI) initiatives, helped mitigate the impact of softer DIY demand and unpredictable weather events.
Financially, Lowe’s Companies, Inc. (NYSE:LOW) remains on solid ground. The company reported second-quarter sales of $23.6 billion, showcasing its ability to maintain significant revenue levels even amid market fluctuations. The number of hedge fund holders in Lowe’s stock has increased to 62 in Q2 2024, up from 60 in the previous quarter, signaling growing institutional interest in the company. This trend is indicative of confidence in Lowe’s Companies, Inc. (NYSE:LOW) long-term growth potential.
Lowe’s Companies, Inc. (NYSE:LOW) commitment to innovation is also noteworthy. The partnership with tech leaders like Apple and NVIDIA to enhance customer experiences through advanced technologies demonstrates the company’s forward-thinking strategy. The launch of initiatives like MyLowe’s Rewards and expanded delivery options via Uber Eats indicates a keen focus on capturing a digitally savvy customer base.
Overall, Lowe’s Companies, Inc. (NYSE:LOW) presents a compelling investment opportunity within the hurricane and natural disaster sector. The combination of strong financial metrics, a growing customer base, and a strategic focus on technology and innovation positions Lowe’s Companies, Inc. (NYSE:LOW) well for future growth, making it an attractive option for investors seeking stability and potential upside in a volatile market.
Madison Investors Fund stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2024 investor letter:
“At home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW), sales continue to be weak. The economic backdrop in housing is particularly interesting at the moment. On one hand, employment levels are healthy and home values remain resilient. On the other hand, housing turnover, which is essentially the number of homes that have been sold relative to the housing stock, is at historically low levels as homeowners are resistant to giving up low mortgage rates on their current home for a higher rate on a new home. Housing turnover is an important business driver for Lowe’s, so the depressed level of activity has weighed on its profits. However, over time we expect it to normalize and Lowe’s performance to improve.”
03. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 66
3M Company (NYSE:MMM) is a diversified technology leader with a wide-ranging portfolio of products and solutions, positioning it as a critical player in hurricane and natural disaster preparedness. Established in 1902 and headquartered in Saint Paul, Minnesota, 3M Company (NYSE:MMM) operates globally, delivering essential safety and industrial products, including abrasives, adhesive solutions, and protective equipment that can be vital during natural disasters. As the company navigates significant transformation and focuses on driving organic growth, its robust financial performance makes it an attractive investment opportunity in this sector.
In the second quarter of 2024, 3M Company (NYSE:MMM) reported earnings per share (EPS) of $1.93, exceeding expectations of $1.68, representing a 39% increase year-over-year. The company’s organic revenue growth was 1%, and adjusted free cash flow reached $1.2 billion, demonstrating an impressive conversion rate of 109%. The company’s operating margins expanded by 440 basis points year-on-year to 21.6%, reflecting strong operational discipline and productivity improvements. These metrics underscore 3M Company (NYSE:MMM) capacity to manage costs effectively while generating significant cash flow.
Notably, 3M Company (NYSE:MMM) has shown resilience amidst a challenging market landscape, particularly in its electronics and industrial segments, which are poised for growth due to increasing demand for disaster recovery solutions. As the company transitions from a healthcare-centric focus, it emphasizes the need for innovation in its core product lines, aiming to rejuvenate aging products while capitalizing on emerging markets like auto electrification and industrial automation.
With 66 hedge fund holders as of Q2 2024, up from 64 in the previous quarter, investor interest in 3M remains strong. This uptick in institutional support indicates confidence in the company’s strategic direction and financial health. As 3M Company (NYSE:MMM) continues to execute its operational excellence strategy, addressing supply chain complexities, and leveraging its innovation capabilities, it is well-positioned for sustained growth. The company’s ongoing commitment to capital efficiency, including share buybacks and prudent investments, further enhances its attractiveness as a top contender in the hurricane and natural disaster stock category.
02. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 86
The Home Depot, Inc. (NYSE:HD) is a leading home improvement retailer with a robust presence both in the United States and internationally. The company’s extensive product offerings encompass building materials, home improvement goods, and installation services, making it an essential player in the hurricane and natural disaster stocks category. As natural disasters increase in frequency and intensity, the demand for home repair and renovation products and services is likely to rise, positioning The Home Depot, Inc. (NYSE:HD) for sustained growth.
In its Q2 2024 earnings call, The Home Depot, Inc. (NYSE:HD) reported earnings per share (EPS) of $4.67, exceeding analyst expectations of $4.53, showcasing the company’s resilience in a challenging economic environment. Despite a reported sales decline of 3.3% from the previous year, the company generated $43.2 billion in sales, indicating strong operational capabilities and a loyal customer base. This decline was largely influenced by higher interest rates and macroeconomic uncertainties that affected consumer spending across home improvement projects, particularly during the softer spring season impacted by extreme weather.
Notably, The Home Depot, Inc. (NYSE:HD) has been proactive in expanding its market share, currently holding about 17% of the $1 trillion home improvement market. The recent acquisition of SRS Distribution adds significant value to its product offerings, particularly in roofing and landscaping, allowing the company to enhance its services and drive cross-selling opportunities. The integration of SRS is expected to bolster revenue growth through innovative product offerings and improved customer credit options.
The company’s online sales also saw an increase of approximately 4%, indicating a successful transition toward digital platforms, which is crucial for capturing the growing e-commerce segment. The improvement in fulfillment options, including a partnership with Instacart, further enhances the customer shopping experience.
Additionally, there are 86 hedge fund holders as of Q2 2024, up from 70 in the previous quarter, signaling growing institutional confidence in The Home Depot, Inc. (NYSE:HD). This increasing institutional interest reflects a positive outlook for the stock, reinforcing its potential as a strong contender in the hurricane and natural disaster sector. With its strategic investments and commitment to customer service, The Home Depot, Inc. (NYSE:HD) is well-positioned for long-term growth and profitability.
Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q2 2024 investor letter:
“Other bottom Q2 contributors included Caterpillar and The Home Depot, Inc. (NYSE:HD). Similarly, home improvement retailer Home Depot faces growing concerns about the consumer spending environment — particularly for home improvement expenditures. However, we believe the company’s long-term prospects and multi-year fundamental outlook are unchanged.”
01. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 95
Walmart Inc. (NYSE:WMT)operates one of the largest retail networks globally, offering a diverse range of products and services through its Walmart U.S., Walmart International, and Sam’s Club segments. The company is a compelling pick for the list of ten best hurricane and natural disaster stocks to buy now due to its strong distribution network, essential product offerings, and capability to support affected regions during natural disasters. With over 10,500 stores in 20 countries, Walmart Inc. (NYSE:WMT) has the reach and resources to ensure the availability of critical goods in times of crisis.
Walmart Inc. (NYSE:WMT) recently reported strong Q2 2025 results, with an earnings per share (EPS) of $0.67, surpassing expectations of $0.646. This marks continued robust financial performance, driven by broad-based strength across all its segments. Total net sales grew by 4.9% on a constant currency basis, with global e-commerce sales increasing 21%. The company also saw growth in its U.S. comparable sales, which rose by 4.2%, underpinned by strong customer traffic and unit growth across stores and digital channels.
Walmart Inc. (NYSE:WMT) commitment to expanding its digital infrastructure has also been a key contributor to its resilience. E-commerce sales in the U.S. surged by 22% during the quarter, while internationally, Walmart achieved 18% growth in digital channels. This strong digital growth is crucial during natural disasters, as it enables Walmart Inc. (NYSE:WMT) to continue serving its customers through online orders and deliveries even when physical stores face disruptions.
The company’s focus on operational efficiency and cost controls has improved profitability, with operating income growing faster than sales. Walmart Inc. (NYSE:WMT) ability to leverage technology, such as generative AI, for supply chain automation and inventory management has been a game-changer, contributing to margin expansion.
Hedge fund interest in Walmart has also increased, with 95 hedge funds holding the stock as of Q2 2024, up from 88 in the previous quarter. This demonstrates confidence in Walmart Inc. (NYSE:WMT) fundamentals and growth outlook. Overall, Walmart Inc. (NYSE:WMT) extensive distribution network, diverse product portfolio, and strong financial performance make it a reliable choice for investors looking to gain exposure to hurricane and natural disaster-related stocks.
While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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