As the mercury rises, so does investor interest in certain stocks. With temperatures forecasted to hit nearly 100 degrees in parts of the U.S., industries from air conditioning to home improvement and theme parks could feel the heat.
Here’s a look at ten stocks that might be impacted by June’s sweltering weather.
Scorching Forecast
AccuWeather predicts major population centers in the Midwest and Mid-Atlantic will experience extreme heat this week. Chicago, bracing for temps over 90 degrees, mirrors heatwaves from 2022 and 2023, with no rain in sight.
Midwestern cities like Detroit, Cleveland, and Cincinnati are set for mid-to-high 90s temperatures through Friday.
Meanwhile, the East Coast is gearing up for even higher numbers: New York City and Philadelphia are expecting mid-to-high 90s, while Washington D.C. could top 100 degrees.
Stocks Feeling the Heat
Climate change-driven temperature rises have hit various sectors hard. Among those, businesses that are likely to see increased activity:
- Air Conditioning Manufacturers: Companies like Carrier Global Corp (CARR), Trane Technologies PLC (TT), Lennox International Inc (LII), and Watsco Inc (WSO) typically see a spike in sales during heatwaves, driven by surging demand for cooling solutions.
- Home Improvement Giants: Lowe’s Companies Inc (LOW) and Home Depot Inc (HD) sell a broad range of cooling products, from fans to air conditioners, making them key players during hot spells.
- Backup Power Providers: Generac Holdings Inc (GNRC), known for residential, commercial, and industrial generators, could see increased demand as power outages become more frequent with extreme weather.
- Sunscreen Brands: Edgewell Personal Care Co (EPC), which makes Banana Boat and Hawaiian Tropic sunscreens, may benefit from higher sales as people seek protection from the sun’s harsh rays.
- Theme Parks: On the flip side, prolonged heat could deter visitors. Walt Disney Co (DIS) and Six Flags Entertainment Corp (SIX) might see a drop in attendance as people avoid outdoor activities during extreme heat.
As the summer sun blazes on, these stocks are ones to watch, reflecting the broader impacts of our changing climate on the economy. Stay cool, stay informed.
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