The National Oceanic and Atmospheric Administration's (NOAA) Climate Prediction Center forecasts a 65% chance of above-average hurricane activity for the 2022 season, making it the seventh consecutive year of above-average cyclone activity.

NOAA predicts 14 to 21 named storms in the 2022 hurricane season. Six to 10 storms are expected to become hurricanes, including three to six major hurricanes.

The Atlantic hurricane season spans from June 1 to Nov. 30, with August and September being the most active months. Although the terrible impact of severe weather cannot be overstated, certain stock market sectors fare better when these disasters occur.

Companies involved in construction, including housing and roof repair, for example, often outperform during major weather occurrences.

Here's a list of stocks to keep an eye on during the 2022 hurricane season:

Generators

Generac Holdings Inc. GNRC

Advanced power grid software solutions, backup and prime power systems for residential and industrial applications, solar and battery storage solutions, virtual power plant platforms, and engine and battery-powered equipment are available. Separate from its equipment, Generac, founded in 1959, was the first company to offer a low-cost backup system. The company later created the category of automatic home standby generators.

Home Improvement

Home Depot Inc. HD
Lowe’s Companies Inc. LOW

Home Depot and Lowe's, as the world's largest hardware stores, see an increase in sales following natural disasters on a regular basis. Both companies provide necessary rebuilding goods such as batteries, snow shovels, generators and various building materials in preparation for a storm.

Both companies are involved with disaster relief funds.

Insurance

Allstate Corp. ALL

During storm seasons, insurance stocks like Allstate are notoriously unpredictable. Before a hurricane, property and casualty stocks have historically fallen, then rebound once losses are determined.

Paul Newsome, managing director at Piper Sandler Companies PIPR, said, "I typically recommend investors buy on the storm and sell when the sun shines. But it is really hard to time the storms; I think you should buy stocks on the dips that you already think are inexpensive. The storms simply provide trading opportunities for stocks that you already have a fundamental view on."

Also read: 10 Worst Hurricanes In History