By James Dennin for Kapitall
We're (almost) snowed in at Kapitall, which got us wondering what a Snow Index would look like.
Make no doubt about it. It's winter. Public school students throughout the East and Midwest enjoyed an early weekend courtesy of Jack Frost – and mayors broke out the snow shovels for that winter photo-op. And while this storm may not have been as catastrophic as some people predicted, it is time to brace ourselves for two, maybe three months of cold, wind, and snow.
With that in mind we decided to build a list of winter weather stocks that profit when the snow gets bad. Now, for a lot of reasons this wasn't particularly easy to do. For one, the world's largest maker of snow plows, Meyer, is a privately held company. No matter, we trudged on.
Thinking outside of the box, it wasn't too hard to come up with some stocks who might see a spike during a particularly rough winter. For instance, if you think the slopes are going to be particularly inviting this year, there's a publicly traded ski-resort, Vail (MTN). If you're looking for something a little less seasonal, you could check out Compass Minerals (CMP) – the raw materials supplier which provides much of the country's rock salt.
If you're looking for something a little less seasonal, there's always Johnson & Johnson (JNJ). When people get sick they need more pain killers and moisturizer – but the largest pharmaceutical company in America also has some leverage in the other seasons as well. And generators are useful year-round, although manufacturers like Generac (GNRC) could see a spike when the weather gets particularly bad.
And, finally, for the winter-or-bust crowd, there are a number of publicly traded companies that sell winter-specific recreational goods. These range from the practical and reliable: like winter coats from Columbia Sportswear (COLM), to the more high end, like Arctic Cat Inc. (ACAT), which makes snowmobiles.
Click on the image below to view an interactive chart of analyst ratings over time.
Do you see any investing opportunities in these cold weather stocks? Use the list below to begin your own analysis.
1. Generac Holdings Inc. (GNRC, Earnings, Analysts, Financials): Designs, manufactures, and markets a range of generators and other engine powered products for the residential, light commercial, industrial, and construction markets in the United States Canada, and Mexico. Market cap at $3.89B, most recent closing price at $56.29.
2. Briggs & Stratton Corp. (BGG, Earnings, Analysts, Financials): Designs, manufactures, markets, and services air cooled gasoline engines for outdoor power equipment worldwide. Market cap at $1.03, most recent closing price at $21.63.
3. Compass Minerals International Inc. (CMP, Earnings, Analysts, Financials): Produces and markets inorganic mineral products primarily in North America and the United Kingdom. Market cap at $2.65B, most recent closing price at $79.41.
4. Columbia Sportswear Company (COLM, Earnings, Analysts, Financials): Engages in the design, development, sourcing, marketing, and distribution of outdoor apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. Market cap at $2.71B, most recent closing price at $78.31.
5. Vail Resorts Inc. (MTN, Earnings, Analysts, Financials): Engages in the operation of resorts principally in the United States. Market cap at $2.70B, most recent closing price at $74.99.
6. Douglas Dynamics, Inc. (PLOW, Earnings, Analysts, Financials): Designs, manufactures, and sells snow and ice control equipment for light trucks in North America. Market cap at $369.68M, most recent closing price at $16.60.
7. Johnson & Johnson (JNJ, Earnings, Analysts, Financials): Engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Market cap at $259.45B, most recent closing price at $91.03.
8. Arctic Cat Inc. (ACAT, Earnings, Analysts, Financials): Designs, engineers, manufactures, and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat brand name in the United States and internationally. Market cap at $776.91M, most recent closing price at $56.92.
(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research. All other data sourced from Finviz.)
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