The Strongest Hurricane In History Could Provide Tailwinds For These Stocks
Category 5 Hurricane Patricia is bearing down on Mexico’s Pacific coast on Friday, and meteorologists anticipate the storm’s landfall could be record-breaking.
The most recent data shows that the storm has become the strongest ever in the Western Hemisphere and the third strongest storm ever recorded on the planet.
The storm reportedly has maximum sustained winds of more than 160 mph and is expected to set a new world record for the strongest land-falling storm.
The storm will likely be making landfall between Manzanillo and Puerto Vallarta, Mexico, sometime Friday. The Mexican government has closed major cargo ports in both cities. Manzanillo is Mexico’s busiest cargo port.
Impact On Oil
It appears as if Mexico’s oil industry will not be affected by the storm. State oil giant Pemex has no major facilities in the projected path of Patricia. WTI Crude prices are down 2.0 percent in Friday trading.
There are many companies that could play key roles in the recovery process following a storm harboring as much potential for devastation as Patricia, especially if the hurricane continues to work its way up the Pacific Coast into Southern California.
Generac Holdings Inc. (NYSE: GNRC) makes electric power generators that could be critical during widespread power outages.
Finally, Beacon Roofing Supply, Inc. (NASDAQ: BECN) could benefit from a surge in roofing repairs following a particularly harsh storm such as Patricia.
Disclosure: The author holds no position in the stocks mentioned.
Image Credit: Public Domain, Hurricane Dennis
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