Superstorm Sandy Stocks See Wild Action
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Price: $221.01 +4.82%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2%
Revenue Growth %: -6.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2%
Revenue Growth %: -6.8%
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A number of stocks are seeing action as trading resumes Wednesday as they are viewed as plays on Hurricane Sandy. Some companies are seen as losers from the storm, while others could gain on the clean-up and rebuilding effort.
P&C Insurance:
Catastrophe modelers Eqecat and AIR have estimated Hurricane Sandy insured losses at $5-10B and $5-15 billion, respectively. The three companies that may have the most exposure to Hurricane Sandy are Allstate (NYSE: ALL), Chubb (NYSE: CB) and Travelers (NYSE: TRV), MKM Partners notes and said buy on weakness. Others include AIG (NYSE: AIG), RenaissanceRe Holdings Ltd. (NYSE: RNR), with Bernstein saying buy on weakness (with ALL).
Home Improvement Stores:
Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) seen to benefit from Hurricane Sandy as homeowners, contractors buy products to make repairs.
Building Materials:
Building material stocks up on rebuilding from disaster: Eagle Materials Inc. (NYSE: EXP), Owens Corning (NYSE: OC), Beacon Roofing Supply Inc. (BECN), Lumber Liquidators Holdings, Inc. (NYSE: LL), Mohawk Industries Inc. (NYSE: MHK), Armstrong World Industries, Inc. (NYSE: AWI), USG Corporation (NYSE: USG), Masco Corporation (NYSE: MAS).
Generators:
Generac Holdings Inc. (NASDAQ: GNRC): The company reported strong third quarter results this morning and raised its outlook significantly for the remainder of 2012. "The events of the last few days continue to demonstrate for home owners and business owners the importance of having a backup plan for their power needs.," the CEO said.
Equipment Rental:
Construction equipment companies like United Rentals, Inc. (NYSE: URI) will likely see increased demand on clean-up and rebuilding efforts.
Healthcare Providers:
"With 20 states and DC dealing with floods, power outages, snow storms and major disruptions, healthcare providers in these markets are seeing notable impacts as locations shut down and patients are unable to leave their homes," Jefferies. RadNet (NASDAQ: RDNT), which derives more than 50% of revenues from its imaging centers on the Eastern seaboard, is the most exposed of our companies to disruptions related to Hurricane Sandy, followed by VCA Antech (NASDAQ: WOOF) which has 35% of its animal hospitals in affected states. Lab providers Quest Diagnostics (NYSE: DGX) and LabCorp (NYSE: LH) are also exposed (although it is difficult to quantify) since DGX's busiest lab is in New Jersey (it operates its planes out of Teterboro airport) and LH derives a meaningful amount of business from the New York market. Reduced admissions in hospitals that IPCM's (NYSE: IPCM) doctors operate in will certainly impact volumes. While MEDNAX (NYSE: MD) is also present in Sandy-affected cities, the highly non-discretionary nature of its NICU services buffers its exposure although its large anesthesiology practice in the Fairfax, VA was likely impacted by disruptions at its host hospital and ASCs. Home health provider Amedisys (NASDAQ: AMED) also has sizeable operations in the Northeast, with more than 25% of its agencies located in the region.
Self-Storage:
"In the aftermath of a natural disaster, demand for self storage rises considerably as homeowners, contractors, and local suppliers set about preparing for reconstruction. This was last seen in scale in the aftermath of Katrina, which struck the Gulf Coast in 2005," Cantor Fitzgerald. CubeSmart (NASDAQ: CUBE), Extra Space Storage Inc. (NYSE: EXR), Public Storage (NYSE: PSA), Sovran Self Storage Inc. (NYSE: SSS). Extra Space Storage has the most exposure, according to the firm.
Utilities:
Power knocked out to millions: Consolidated Edison (NYSE: ED), Exelon Corp. (NYSE: EXC), Public Service Enterprise Group Inc. (NYSE: PEG), FirstEnergy (NYSE: FE).
P&C Insurance:
Catastrophe modelers Eqecat and AIR have estimated Hurricane Sandy insured losses at $5-10B and $5-15 billion, respectively. The three companies that may have the most exposure to Hurricane Sandy are Allstate (NYSE: ALL), Chubb (NYSE: CB) and Travelers (NYSE: TRV), MKM Partners notes and said buy on weakness. Others include AIG (NYSE: AIG), RenaissanceRe Holdings Ltd. (NYSE: RNR), with Bernstein saying buy on weakness (with ALL).
Home Improvement Stores:
Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) seen to benefit from Hurricane Sandy as homeowners, contractors buy products to make repairs.
Building Materials:
Building material stocks up on rebuilding from disaster: Eagle Materials Inc. (NYSE: EXP), Owens Corning (NYSE: OC), Beacon Roofing Supply Inc. (BECN), Lumber Liquidators Holdings, Inc. (NYSE: LL), Mohawk Industries Inc. (NYSE: MHK), Armstrong World Industries, Inc. (NYSE: AWI), USG Corporation (NYSE: USG), Masco Corporation (NYSE: MAS).
Generators:
Generac Holdings Inc. (NASDAQ: GNRC): The company reported strong third quarter results this morning and raised its outlook significantly for the remainder of 2012. "The events of the last few days continue to demonstrate for home owners and business owners the importance of having a backup plan for their power needs.," the CEO said.
Equipment Rental:
Construction equipment companies like United Rentals, Inc. (NYSE: URI) will likely see increased demand on clean-up and rebuilding efforts.
Healthcare Providers:
"With 20 states and DC dealing with floods, power outages, snow storms and major disruptions, healthcare providers in these markets are seeing notable impacts as locations shut down and patients are unable to leave their homes," Jefferies. RadNet (NASDAQ: RDNT), which derives more than 50% of revenues from its imaging centers on the Eastern seaboard, is the most exposed of our companies to disruptions related to Hurricane Sandy, followed by VCA Antech (NASDAQ: WOOF) which has 35% of its animal hospitals in affected states. Lab providers Quest Diagnostics (NYSE: DGX) and LabCorp (NYSE: LH) are also exposed (although it is difficult to quantify) since DGX's busiest lab is in New Jersey (it operates its planes out of Teterboro airport) and LH derives a meaningful amount of business from the New York market. Reduced admissions in hospitals that IPCM's (NYSE: IPCM) doctors operate in will certainly impact volumes. While MEDNAX (NYSE: MD) is also present in Sandy-affected cities, the highly non-discretionary nature of its NICU services buffers its exposure although its large anesthesiology practice in the Fairfax, VA was likely impacted by disruptions at its host hospital and ASCs. Home health provider Amedisys (NASDAQ: AMED) also has sizeable operations in the Northeast, with more than 25% of its agencies located in the region.
Self-Storage:
"In the aftermath of a natural disaster, demand for self storage rises considerably as homeowners, contractors, and local suppliers set about preparing for reconstruction. This was last seen in scale in the aftermath of Katrina, which struck the Gulf Coast in 2005," Cantor Fitzgerald. CubeSmart (NASDAQ: CUBE), Extra Space Storage Inc. (NYSE: EXR), Public Storage (NYSE: PSA), Sovran Self Storage Inc. (NYSE: SSS). Extra Space Storage has the most exposure, according to the firm.
Utilities:
Power knocked out to millions: Consolidated Edison (NYSE: ED), Exelon Corp. (NYSE: EXC), Public Service Enterprise Group Inc. (NYSE: PEG), FirstEnergy (NYSE: FE).
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