Where is the profit given the snowstorm that will hit the United States


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The worst snowstorm hit the United States once, the southeast coast has already reached, and tomorrow is expected to reach more developed northeastern states. According to most market participants, the storm will push electricity prices and natural gas demand even higher by increasing energy prices. The Arctic cold, which is expected to hit the country, is likely to increase the share of automotive retailers who will certainly have sales after that.

Here's what companies to target when the exchange is opened at 4:30 pm

Energy sector
Power companies on the East Coast include Duke, Dominion, NextEra, Consolidated Edison, PPL, Enterprise Service Group and Exelon. Given the large costs that residents will make for heating, we expect growth for these companies.

Insurance companies
Potential cold risks include freezing of pipes and a high risk of damage to ice-related limbs, which may increase losses for insurers. Insurance companies that have a large exposure to insured people in the region are Chubb and Travelers. We expect a decline since opening today, and if the damage is more than the forecast, the correction for the companies in question will be deeper.

Industrial sector
Compass Minerals, the supplier of road cleaning salt, will likely see strong growth, as heavy snowfall will require a large amount of salt to clean. Manufacturers and distributors of heating, ventilation and air conditioning systems such as Watsco, Lennox International and Ingersoll-Rand will most likely benefit.

Airlines will most likely decrease as closed airports will lead to additional travel costs for both passengers and freight.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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