In this article, we discuss 5 best hurricane and natural disaster stocks to buy now. If you want to read about some more natural disaster stocks, go directly to 10 Best Hurricane and Natural Disaster Stocks to Buy Now.
5. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 34
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential, commercial, and industrial markets. It is one of the most prominent hurricane stocks to invest in. Natural disasters disrupt electric power generation, fueling the demand for energy storage systems. Generac Holdings Inc. (NYSE:GNRC)’s top-line growth and operating margins have begun to improve in the past few months. Generac Holdings Inc. (NYSE:GNRC) has been one of the best compounders in the past decade, with the share price up over 1,000% during the period.
At the end of the second quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $372.8 million in Generac Holdings Inc. (NYSE:GNRC), compared to 33 in the previous quarter worth $383 million.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Generac Holdings Inc. (NYSE:GNRC) was one of them. Here is what the fund said:
“On a securities level, our top contributors (includes) Generac. All these businesses performed well fundamentally. For Generac Holdings Inc. (NYSE:GNRC), the leading provider of residential standby generators, fundamentals remained strong, but there was little to highlight from the quarter.”
4. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 34
CVS Health Corporation (NYSE:CVS) provides health services in the United States. It is one of the elite hurricane stocks to invest in. Hospitals witness increased inflows after natural disasters as people seek healthcare to recover from the physical injuries and trauma caused by the disasters. CVS Health Corporation (NYSE:CVS) recently partnered with American Wellness for its Virtual Primary Care Service. This deal was management’s response to Amazon’s acquisition of One Medical, as the battleground for Primary Care Services heats up in the virtual healthcare market.
On September 07, Evercore ISI analyst Elizabeth Anderson kept an Outperform rating on CVS Health Corporation (NYSE:CVS) stock and raised the price target to $125 from $120, denoting that CVS Health Corporation (NYSE:CVS) has been looking for three types of assets – primary care, home health, and provider enablement – and the purchase of Signify checks off two of the boxes and is highly complementary to the third.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in CVS Health Corporation (NYSE:CVS), with 3.4 million shares worth more than $312.7 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:
“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of CVS Health Corporation (NYSE:CVS), which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”
3. Copart, Inc. (NASDAQ:CPRT)
Number of Hedge Fund Holders: 50
Copart, Inc. (NASDAQ:CPRT) provides online auctions and vehicle remarketing services. It is one of the premier hurricane stocks to invest in. Since natural disasters force people to relocate, the demand for vehicles rises after disasters. On September 09, Baird analyst Craig Kennison kept an Outperform rating on Copart, Inc. (NASDAQ:CPRT) stock and lowered the price target to $135 from $150, adding that with used cars prices falling, it is expected that the total loss rate will go down soon, eventually driving more assignments at the expense of unit profitability.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Renaissance Technologies is a leading shareholder in Copart, Inc. (NASDAQ:CPRT), with 1 million shares worth more than $117 million.
In its Q2 2021 investor letter, Merion Road Capital Management, an asset management firm, highlighted a few stocks and Copart, Inc. (NASDAQ:CPRT) was one of them. Here is what the fund said:
“Many of our companies reported very strong earnings back in April. The market shrugged these off as it pondered how much growth would be sustainable, are inflationary trends transitory, and when interest rates will rise. While a slow-down in the broader economic recovery would hurt our portfolio, I remain positive on our position’s market positioning and longer term trends.
For instance, Copart, Inc. (NASDAQ:CPRT) reported 33% YoY revenue growth with EBIT margins expanding to 45%, an all-time high. While the company benefitted from inflation (an interesting hedge the market largely ignored earlier in the year), sustainable increases in ASPs and service offerings bode well for revenue per vehicle growth. Management noted that traffic is still down 20% or more as non-US markets are several months behind the United States on reopening and vaccinations. This volume boost should provide good tailwinds in the coming months.”
2. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 54
3M Company (NYSE:MMM) operates as a diversified technology company worldwide. It is one of the best hurricane stocks to invest in. On October 5, the company announced that it would soon launch a next generation of 3M Scotchlite Reflective Material Industrial Wash to help meet the number of washes of garments and to withstand the tough conditions of industries.
Among the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder in 3M Company (NYSE:MMM) as of Q2 2022, with 6.2 million shares worth about $802 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and 3M Company (NYSE:MMM) was one of them. Here is what the fund said:
“We also bought back into 3M Company (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.”
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. It is one of the top hurricane stocks to invest in. On October 03, Jefferies analyst Jonathan Matuszewski kept a Buy rating on Home Depot, Inc. (NYSE:HD) stock and raised the price target to $394 from $392, remarking that home maintenance and emergency repair offer under-appreciated downside cushion for The Home Depot, Inc. (NYSE:HD) if discretionary home improvement outlays slow.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in The Home Depot, Inc. (NYSE:HD), with 8.4 million shares worth more than $2.2 billion.
In its Q1 2022 investor letter, Diamond Hill Capital , an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“The Home Depot, Inc. (NYSE:HD) shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
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