Heat Up Your Portfolio As Cold Weather Moves In

Much of the US is expecting extreme cold this week, with negative temperatures forecast throughout the midwest and a mix of snow and sleet seen in the Northwest. Even southern states like Georgia are expected to dip below freezing.

 

As the winter weather sweeps across much of the United States, children will be hoping for a snow-day, workers will be praying for a smooth commute and traders will be looking to heat up their portfolios with some weather-proof stocks.

 

Large amounts of snow could be beneficial for ski resorts like Vail Resorts Inc. MTN or Intrawest Resorts Holdings Inc. SNOW as they could see increased activity. Over the past six months, Vail shares have grown 14.64 percent, while Intrawest’s growth has been more modest at just 2.43 percent.

 

Preparation for poor weather can also offer some opportunities for investors as big cities across the nation prepare their roads and sidewalks for the morning commute. Compass Minerals International, Inc. CMP is a supplier of the salt used to keep roads clear of ice, and has seen consistent growth over the past five years. Toro Company TTC, a publicly traded snow-blower manufacturer that saw earnings growth of 15.27 percent last year, is another good bet for winter weather investors.

 

In the retail sector, winter gear retailers are plentiful from sportswear companies like Colombia Sportswear Co COLM and VF Corporation VF to Deckers Outdoor Corp DECK, which makes  Ugg brand winter boots. 

 

For investors who are looking to remain a bit less seasonal, there are several options. Hardware and home repair business like Home Depot HD or Lowe’s Companies Inc. LOW usually see an increase in store traffic after storms damage pipes and gardens. 

Posted In: NewsMarketsConsumer DiscretionaryHome Improvement Retail
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