Most people are optimistic and can make light of almost any negative situation.
I like to think of myself as a “glass half full” kind of guy too, and while there’s no denying the devastating consequences of Hurricane Florence, there’s a silver lining to be seen.
Despite the damage and loss that blew through the Carolinas, believe it or not, there’s profit to be made. These storms tend to cause an uptick in the building materials industry of the market.
For example, in 2012, after Hurricane Sandy came and went, Home Depot (HD) and Lowe’s (LOW) each experienced positive impact worth hundreds of millions of dollars!
This time around, things are no different. Here’s how you can take advantage of it.
When it comes to natural disasters, one blessing that’s often hidden in disguise is the traffic that’s added to the building materials industry in return.
It makes sense when you think about it…
Hurricanes, like Florence, cause damage, which, in return, require materials for repairs. As I mentioned, suppliers, such as Home Depot and Lowe’s, saw a substantial benefit for the demand of their products after Sandy hit.
Home Depot managed to pull in a $550 million combined positive impact, while Lowe’s followed behind with a $219 million impact.
Judging by the toll Florence took on the east coast, these values shouldn’t be too far off from where they stood before and it may be a safe bet to invest the companies that provide building materials to the public.
With approximately 10-feet of storm surge in North Carolina, it’s fair to say that the state has a substantial amount of water damage that’s underway.
With that said, keep your eyes peeled for other companies like Mohawk (MHK) and Lumber Liquidations (LL) as they should see a rise in demand as more people move to repair damages caused by flooding.
The same applies for USG (USG) and Eagle Materials (EXP) who each supply wallboard products, an aspect that’s sure to be impacted by the recent water damages.
Bigger corporations, like Home Depot and Lowe’s, are expected to deliver more promising investment returns; however, that’s not to say that the others should be completely ruled out.
Although the event of these hurricanes are disastrous, they do offer profitability for YOU and the companies involved in building materials industry of the market.
Millions of dollars are pouring in along with the floods from Florence, but it’s up to you to take a piece of it for yourself.
