How to Trade Hurricane Beryl

With Hurricane Beryl making a mess, do two key things.

One, stay safe and out of its way.

Two, keep an eye on hurricane stocks like Generac (GNRC), a generator company.

With the storm now approaching Texas, it’s regaining strength over the warm waters of the Gulf, which could fuel even more demand for generators.

“A hurricane warning was declared for a stretch of the state’s coast from Baffin Bay, south of Corpus Christi, to Sargent, south of Houston, and forecasters said the storm’s center was likely to approach the state Sunday and then make landfall the following day. Storm surge warnings were also in effect,” says the Associated Press.

There was even a voluntary evacuation order issued by Galveston Emergency Management Officials for the west end of Galveston Island, added reports.

Also remember that according to The Weather Channel, the 2024 hurricane season could be one of the most active on record. “The outlook calls for 24 named storms, 11 of which will become hurricanes and six of which will reach Category 3 status or stronger,” they noted. “T​hat’s well above the 30-year average tally for both hurricanes and storms, and also markedly above the tally of 20 storms, seven hurricanes and three Cat 3-plus hurricanes in 2023.”

With regards to hurricane stocks, keep an eye on Generac Holdings (GNRC).

GNRC is an $8.52 billion leader in power generation equipment and other light-motor equipment for residential and industrial customers.

It markets home standby generators and the leading global manufacturer of mobile generators for industrial use.  Beyond the physical damage to homes and businesses, one of the biggest inconveniences of a powerful storm is electrical outages. With the first storm of the season, oversold shares of GNRC are starting to pivot from $132.50 support.