This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Heat Wave Bullish for Death Investors

NEW YORK ( TheStreet) -- If you're not enjoying the summer heat wave, maybe you should be invested in death stocks.

That is more or less the message, anyway, from a recent Bank of America Merrill Lynch report on Service Corp. International (SCI), the largest publicly-traded company in the "death care industry."

In a section entitled "Death rate update: Extreme weather could boost 3Q13," Bank of America analyst Robert Willoughby noted that U.S. deaths are up 6% year to date. Third quarter deaths, meanwhile, are up 2.8%.

"While the likely benefit to SCI is small, we note extreme heat events, such as those occurring throughout the U.S. over the past several weeks, have historically corresponded to an increase in observed heat related deaths," Willoughby wrote.

The benefit to Service Corp. may be small, but the words "heat wave updates," were included in the title of the report, so how small can it really be? Certainly not too small to make fun of, anyway.

But in case you're dead serious about this topic, as Merrill's analysts appear to be, you might consider a few other death stocks, like Hillenbrand (HI - Get Report), StoneMor Partners (STON), Carriage Services (CSV)and Matthews International (MATW - Get Report). And while you're at it, you might want to take a look at Smith & Wesson Holding Corp. (SWHC - Get Report) and Philip Morris International (PM - Get Report). Why rely on the heat when guns and cigarettes are so much more effective?

-- Written by Dan Freed in New York.

Follow this writer on Twitter.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HI $29.50 -2.40%
MATW $53.01 -1.30%
PM $80.87 -0.37%
SCI $29.10 -0.31%
SWHC $16.34 -0.85%

Markets

DOW 17,637.51 -92.60 -0.52%
S&P 500 2,064.51 -12.27 -0.59%
NASDAQ 4,977.7870 -31.4270 -0.63%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs