When st𝔍orms bear down on areas with dense populations, the impact can be severe. But while storms and other devastating weather events can cause millions of dollars worth of damage to individuals and co꧟mpanies, some businesses may benefit from them.

For example, engineering firms, home improvement companies, and generator manufacturers often see revenue grow as a direc🧸t result of certain weather events.

Storms rarely result in comprehensive financial improvement in the long run, and companies shouldn't count on them to improve long-term revenue. But an increase in business during storm season can be enough to shift investor sentiment and cause a rally in stock values.

Home Improvement Companies

The Home Depot (HD), Lowe’s (LOW), and Walmart (WMT) are t🔥hree companies that may see an increase in business as a consequence of a severe weather event.

The shares of these big-box retailers are generally considered to be top picks to buy ahead of a storm for the potential 🦩increase in stock value.

They can still see an increase in sales even if a weather event does not have a significant impact. That's because they sell supplies that people need before a storm, including batteries, snow shovels, generators, and various building materials used to prepare for the storm.

These companies may see an additional increa🌄se in sales post-storm if the damage is significant as consumers purchase materials needed to c꧙lean up and rebuild.

Generator Companies

If a storm results in significant power losses, demand for generators increases. Generator manufacturers like Generac Holdings (GNRC) usually benefit.

Generac is one of the largest publicly traded manufacturers of home backup generators and was the first company to engineer affordable home standby generators.

The company provides portable, residential, 澳洲幸运5开奖号码历史查询:commercial, and industrial generators in high demand if a weather event results in power outages.

Engineering Companies

Engineering companies often benefit from rebuilding efforts after major storms. These companies include AECOM (ACM) and Fluor (FLR).

Both of them are major government contractors🐠, which means they can potentially b💞enefit from federal disaster relief.

Fluor also has a diverse business, which includes engineering, 澳洲幸运5开奖号码历史查询:procurement, construction, fabrication and modulari🅘zation, commissioning and maintenance, and project management services. All of them may see 🍰additional revenue following major storms.

AECOM's business is equally diverse, providing services for projects, including highways, bridges, government and commercial buildings, water facilities, and power transmission and distribution.

Battery Makers

Battery sales usually increase before storms are expected as🧸 consumers stock up on batteries 𒀰to power their flashlights and radios.

Energizer Holdings (ENR), with its rabbit mascot that keeps on going, may also keep on rising following such events.𝓰

When you think of household batteries, Panasonic and Duracell may also come to mind. Berkshire Hathaway acquired battery company Duracell from Procter & Gamble (PG) in 2016 by buying all remaining shares.

Water Solution Companies

Clean watꦰer shortages can occur 🎉when a major storm hits, especially if floodwater affects public drinking water. Companies that can test and treat water, as well as transport it, are needed and are often contracted by the government to help in these cases.

One of the leaders in the area of water treatment is Xylem (XYL), making it a company to watch꧟ during the storm season.

Primo Water (PRMB) is a leading provider of water dispensers, purified bottled water, and self-service refill drinking water in the U.S. and Canada.

The company's extensive distribution network allows it to quickly provide clean drinking water to affected areas during water shortages caused by storms or other disasters.

Property Casualty Insurers

Major weather events, such as hurricanes, tornadoes, and floods, can have a significant impact on the insurance industry, which includes companies like Allstate (ALL), Progressive (PGR), Travelers (TRV), and Chubb (CB).

After a major event, if an insu♕rance company experiences a hi⛄gh number of claims or pays out substantial amounts in damages, its profitability may suffer.

This, in turn, can lead to a decline in the company's stock price, as investors may perceive the company as being at greater risk or less financially stable.

However, in the aftermath of a severe weathe🐽r event, the demand for insurance typically increases as individuals and busines🌼ses seek to protect themselves from future losses.

This surge in demand is often drive🍨n by a heightened awareness of the risks associated with natural disasters and a desire to mitigate potential financial losses in the event of another catastrophe.

As the demand for insurance rises, insurance companies often respond by increasing their rates, and potentially long-term growth.

The Bottom Line

Every cloud has a silver lining, and so too do st𓃲orm clouds that promise hurricanes and floodi🥂ng.

While natural disasters can be costly for individuals and larger regions, they can also be a boon to investors in certain industries or sectors that are well-posi🌳tioned to profit from such calamities.

Batte🧸ry and generator manufacturers and engineering and water works services, among others, are often examples of these types of companies.