This Specific Sector Has Been Known to Rally During Hurricane Season

Hurricane Dorian just barreled its way through the Bahamas earlier this week, and estimates of the damage have already skyrocketed to dramatic levels. A new Bloomberg report cited risk modeler and insurance firm Karen Clark & Co., which said that damage to commercial, residential, and industrial properties as well as business-interruption expenses could total $7 billion. That nearly wipes out the country’s $9 billion economy without even accounting for vehicle losses or infrastructure damage.

Novice Traders Earn $86 Million In 5 Years Using This Blueprint 

Skeptical? Consider this: a small group of novice traders used this blueprint to earn $86 million in 5 years. It’s so easy to use that anyone regardless of age, gender, background, or education can follow it and potentially earn a fortune in the stock market. Learn this blueprint NOW and start using it immediately to eliminate all of your financial worries forever. [ad]

Click here for your money making blueprint

The June-November period otherwise known as “hurricane season” can be extremely lethal to national economies. The 2017 Atlantic hurricane season was estimated to be the costliest season on record, with damages totaling $360 billion. Hurricane Harvey alone — which landed in late August 2017 and decimated Houston and most of Southeast Texas — racked up $125 billion in total damages, tying with Hurricane Katrina in 2005. 

While the unimaginable devastation may make seeking investing opportunities seem callous, savvy market participants should always identify them whenever they can. Many companies in charge of restoring the affected areas can quickly become backdoor profit plays, particularly construction materials companies poised to benefit the most from the cleanup efforts. They’re the ones reaping enormous contracts from the federal government when the clouds clear and people get a good look at what needs to be done.

For instance, on Sept. 14, 2017, shortly after Harvey and Irma made landfall, the Federal Procurement Data System (FPDS) reported nearly $614.3 million worth of contracts had been awarded to repair damage from the two hurricanes. Harvey and Irma both hit the United States within weeks of each other and cost an estimated $330 billion in damages combined. By the end of that year, the U.S. Government Accountability Office (GAO) reported that federal agencies allocated $5.6 billion worth of contracts to support recovery efforts from Harvey, Irma, and Maria. 

The companies poised to land the biggest contracts – and return the most profits to investors – are usually the ones selling ready-mixed concrete and cement-related materials. After all, concrete and cement create roads, highways, and buildings, all considered the backbone of U.S. infrastructure. The concrete industry also has extreme economic importance, boasting more than half a million U.S. workers and $49 billion in annual payroll.

According to the Weather Channel’s official site, there are eight other storm systems besides Dorian currently in the Northern Hemisphere that are either named storms or areas that may soon become named storms. Investors looking for a solid and safe play before the next one makes U.S. landfall should consider U.S. Concrete Inc. (USCR), one of the U.S. construction industry’s biggest providers of concrete products with revenue of $367.5 million on 2.9 million tons of concrete volume in the second quarter. 

Even better are the stock’s fundamentals, which already reflect some of the company’s increased demand. Based on current-year earnings per share (EPS) estimates from Thomson Reuters analysts, USCR’s P/E ratio is 16.2, far lower than the trailing P/E ratio (covering the pre-hurricane period) of 45.95, meaning analysts are bullish on the stock and expect bigger earnings by the end of the year. 

Furthermore, if we look at next year’s estimates from the same analysts, the P/E ratio drops to 11.97. The only way to get that low P/E ratio is for next year’s profits to grow, which investors should expect while collecting handsome returns in the form of share-price gains.

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.