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Florida is preparing for another hurricane to make landfall this week, less than two weeks after Hurricane Helene.
Here’s a look at the forecast and the stocks to watch.
Hurricane Milton intensifies: Less than two weeks after Hurricane Helene hit Florida, Hurricane Milton is intensifying into a potential Category 4 or Category 5 storm, making landfall in the state on Wednesday.
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CNN reported that the storm has increased in size and is now considered a Category 3 hurricane. According to the report, the growing size of the storm could affect a larger portion of Florida than the last hurricane.
Milton is expected to reach Florida’s Gulf Coast, with the state already declaring a state of emergency and evacuations underway. Hillsborough County, which includes Tampa, is among the areas expected to see evacuations on Monday.
Several school districts across the state closed school Monday.
Director of the Florida Division of Emergency Management Kevin Guthrie said Sunday that the storm could result in the state’s largest evacuation since 2017.
“I urge Floridians to complete storm preparations now and implement your plan,” Guthrie said Sunday.
Government of Florida Ron DeSantis warned residents of the potential for more power outages in the state than Helene.
Milton’s timing could deliver a double whammy for Florida State and surrounding regions still recovering from Helene.
“You get hit by a major hurricane, what’s going to happen to that debris? It’s going to dramatically increase the damage,” DeSantis said.
The existing and additional debris can also make trails difficult for emergency personnel.
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Stocks to watch: While theme parks in Florida largely avoided closures due to Helene, the latest hurricane to hit the region could have significant impacts on the industry.
Orange County, home to Orlando, is among the counties under a state of emergency ahead of Hurricane Milton’s landfall.
Walt Disney World, owned by The Walt Disney Company (NYSE:DIS), is among the theme parks that could experience closures due to weather, lost revenue opportunities and refunds. The theme park opened Monday, but as of Sunday it has stopped making reservations for Tuesday and Wednesday, Florida Today reports.
Disney World has closed due to several hurricanes in the past, most recently due to Hurricane Ian in 2022. The theme park was able to escape Helene with minimal impact on some outdoor activities and nighttime entertainment events being canceled.
Universal Studios in Orlando, owned by Comcast Corporation (NASDAQ:CMCSA), could also see closures and cancellations due to the storm’s current path.
Energy companies like Duke Energy (NYSE:DUK) and Southern Company (NYSE:SO) are among the utilities that could experience large numbers of customer outages. The companies could face higher labor costs and additional costs to repair infrastructure after the storm.
While theme park stocks could be negatively impacted by Hurricane Milton, several other stocks and sectors could benefit from the storm and the impending damage.
Home improvement retailers such as Home Depot (NYSE:HD) and Lowe’s Companies (NYSE:LOW) have traditionally benefited from hurricane recovery efforts. With the potential for greater damage from the back-to-back hurricanes, home improvement retailers could see an increase in demand in the regions affected by the storm.
Generac Holdings (NYSE:GNRC) is another company that could benefit from the hurricanes as demand for generators increases. On Monday, Generac shares hit new 52-week highs ahead of Hurricane Milton.
One sector facing uncertainty is the insurance sector, as severe damage from the hurricane could hurt profits, but a weaker impact could boost profits with fewer claims. Companies like Berkshire Hathaway (NYSE:BRK) (NYSE:BRK), Allstate Corporation (NYSE:ALL) and Travelers Companies (NYSE:TRV) are among the publicly traded companies that could be affected by insurance claims due to the hurricane.
When Hurricane Helene initially hit, insurance companies expected minimal impact. However, as damage estimates rise, concerns increase. After a relatively mild hurricane season, the back-to-back blows from Helene and Milton could pose challenges for insurers providing home, hurricane and flood coverage.
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This article Hurricane Milton Is Florida’s Second Storm in Two Weeks: How Disney, Theme Parks and Insurance Companies Could Be Affected originally appeared on Benzinga.com
