Breaking News
0

Factbox: Hurricane season U.S. stocks to watch

Stock MarketsMay 27, 2018 08:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Factbox: Hurricane season U.S. stocks to watch

NEW YORK (Reuters) - Several Atlantic Ocean hurricanes in 2017 wrought heavy damage in the Caribbean and U.S. mainland, but for U.S. stocks in several industries, including hotels and transportation, they were a tailwind.

The first named storm of the 2018 hurricane season, Subtropical Storm Alberto, is projected to make landfall on Monday. Alberto forced the evacuation of oil workers in the U.S. Gulf of Mexico on Friday.

In 2017, the hurricane season, which typically runs from June to November, caused more than $250 billion worth of damage in the United States. Hurricane Harvey struck the Houston area in August and Hurricane Irma hit Florida in September.

Also in September, Hurricane Maria devastated Puerto Rico, where thousands of residents still lack electricity.

But car rental, hotel and home improvement companies benefited from an influx of customers seeking emergency resources in the wake of the storms. Freight companies commanded higher prices as capacity tightened due to increased demand for supplies in areas struck by the hurricanes.

Not all industries fared as well. Several oil companies saw their operations disrupted by Hurricane Harvey. Insurance companies faced mounting catastrophe losses from hurricanes and other natural disasters.

Here are how shares of companies in these industries performed during last year's hurricane season.

CAR RENTAL

Shares of Hertz Global Holdings Inc (N:HTZ) and Avis Budget Group Inc (O:CAR) surged during much of the 2017 Atlantic hurricane season on investors' anticipation of increased demand. Hertz shares climbed 156.2 percent between June and early November, while Avis shares rose 80.1 percent during the same time period.

Both companies' shares fell sharply after Nov. 6, when Avis lowered its full-year earnings forecast in part due to damage from hurricanes. Still, Avis shares ended the year 93.2 percent above their June low, and Hertz shares climbed 133 percent in the same time period.

FREIGHT

Between June 1 and Dec. 1, shares of USA Truck Inc (O:USAK) soared 172.9 percent, while shares of XPO Logistics Inc (N:XPO) and Old Dominion Freight Line Inc (O:ODFL) climbed more than 40 percent. J B Hunt Transport Services (O:JBHT) shares rose 26.7 percent over the same period.

HOME IMPROVEMENT

Home Depot Inc (N:HD) shares rose 16.3 percent during the 2017 Atlantic hurricane season. In November, the home improvement retailer raised its 2017 profit and sales forecasts in response to increased demand for emergency and rebuilding supplies.

HOTELS

For several hotel operators, the increased demand from guests displaced by hurricanes outweighed the damage the storms wrought on their properties in affected areas.

From June 1 to Dec. 1, shares of Hyatt Hotels Corp (N:H) jumped 25.8 percent, while La Quinta Holdings Inc (N:LQ) climbed 24.5 percent. Shares of Marriott International Inc (O:MAR), Hilton Worldwide Holdings Inc (N:HLT) and Choice Hotels International Inc (N:CHH) rose between 15.9 percent and 18.9 percent.

OIL

During the 2017 Atlantic hurricane season, shares of Kinder Morgan Inc (N:KMI), which shut down several of its pipelines and gas facilities as Hurricane Harvey approached, fell 8.3 percent.

Shares of oilfield services companies also slumped. Shares of Baker Hughes (N:BHGE), owned by General Electric Co (N:GE), dropped 20.6 percent between June 1 and December 1. Halliburton Co (N:HAL) shares fell 5.3 percent, and Schlumberger NV (N:SLB) shares declined 7.2 percent.

INSURANCE

Florida home insurers' shares slumped on Sept. 7 as investors anticipated heavy losses from Hurricane Irma. Heritage Insurance Holdings Inc (N:HRTG), HCI Group Inc (N:HCI), Universal Insurance Holdings Inc (N:UVE), United Insurance Holdings Corp (O:UIHC) and Federated National Holding Co (O:FNHC) all tumbled between 5.4 and 15.7 percent that day.

Factbox: Hurricane season U.S. stocks to watch
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email