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Heating Up A Portfolio As Cold Weather Moves In

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Heating Up A Portfolio As Cold Weather Moves In

Much of the United States is expecting extreme cold this week, with negative temperatures forecast throughout the Midwest and a mix of snow and sleet 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.

Winter Stocks

Recreation

Large amounts of snow could be beneficial for ski resorts like Vail Resorts, Inc. (NYSE: MTN) or Intrawest Resorts Holdings Inc (NYSE: 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 2.43 percent.

Related Link: Farmers' Almanac Warns Of Cold Winter: 5 Tips To Lower Utility Bills

Preparation

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. (NYSE: 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 Co (NYSE: TTC), a publicly traded snow-blower manufacturer that saw earnings growth of 15.27 percent last year, is another possible bet for winter weather investors.

Retail

In the retail sector, winter gear retailers are plentiful from sportswear companies like Colombia Sportswear Company (NASDAQ: COLM) and VF Corp (NYSE: VFC) to Deckers Outdoor Corp (NYSE: DECK), which makes Ugg brand winter boots. 

Beyond Seasonal

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

Image credit: Matteo Paciotti, Flickr

 

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