In case you have been living in a cave or on a beach in the French Riviera and missed the news, the U.S. East Coast has experienced several severe snow storms so far this winter. Just this past week, the Philadelphia-D.C. corridor got walloped twice, and the New York City area was hit as well.
So what stocks stand to benefit (or suffer) from winter weather? In this installment of The Finance Professor , I'll list my blizzard winners. (See my list of winter weather losers here.)
Note that the weather's impact will differ from industry to industry. Benefits to some of these companies could be short-lived and should not be extrapolated to longer periods of time. On the other hand, a drop in same-store sales by 1% or 2% could have a significant impact on earnings, which might be reflected in revisions to analysts' estimates. As always, do your homework to ascertain the impact, if any, on each stock.
Winner 1: Hardware Stores