Florida is bracing for another hurricane to make landfall this week, less than two weeks after Hurricane Helene.
Here's a look at the forecast and 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, set to make landfall in the state on Wednesday.
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CNN reported that the storm has grown in size and is now considered a Category 3 hurricane. According to the report, the storm's growing size could affect a larger area of Florida than the last hurricane.
Milton is expected to hit the Gulf Coast of Florida, with the state already declaring a state of emergency and working on evacuations. Hillsborough County, which includes Tampa, is among the areas expected to call for evacuations Monday.
Several school districts in the state closed school Monday.
Florida Division of Emergency Management director Kevin Guthrie said Sunday the storm could result in the state's largest evacuation since 2017.
"I urge Floridians to finalize your storm preparations now, enact your plan," Guthrie said Sunday.
Florida Gov. Ron DeSantis cautioned residents on the potential for more power outages in the state than with Helene.
The timing of Milton could create a double whammy for the state of Florida and surrounding regions that are still recovering from Helene.
"You get hit with a major hurricane, what's going to happen to that debris? It's going to increase the damage dramatically," DeSantis said.
The existing and additional debris could also make pathways tough for emergency personnel.
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Stocks to Watch: While Florida theme parks mostly avoided closures from Helene, the newest hurricane in the region could significantly impact the sector.
Orange County, home to Orlando, is one of the counties in a state of emergency ahead of Hurricane Milton’s landfall.
Walt Disney World, owned by The Walt Disney Company DIS, is among the theme parks that could face closures due to weather, missed revenue opportunities, and refunds. The theme park is open Monday but, as of Sunday, had shut down the ability to make reservations for Tuesday and Wednesday, as reported by Florida Today.
Disney World has closed for several hurricanes in the past, most recently for Hurricane Ian in 2022. The theme park was able to escape Helene with minimal impact on some outdoor activities and night entertainment events that were canceled.
Universal Studios in Orlando, which is owned by Comcast Corporation CMCSA, could also face closures and cancellations due to the storm's current path.
Power companies like Duke Energy DUK and Southern Company SO are among utilities that could see large numbers of customer outages. The companies could face increased labor costs and additional costs to repair infrastructure after the storm.
While theme park stocks could see a negative impact from Hurricane Milton, several other stocks and sectors could benefit from the storm and the pending damage.
Home improvement retailers like Home Depot HD and Lowe's Companies LOW traditionally gain from hurricane restoration efforts. With the potential for increased damage due to the back-to-back hurricanes, home improvement retailers could see a surge in demand in the regions hit by the storm.
Generac Holdings GNRC is another company that could benefit from the hurricanes as demand for generators increases. On Monday, Generac shares hit new 52-week highs in anticipation of Hurricane Milton.
One sector facing uncertainty is insurance, as severe damage from the hurricane could hurt profits, but a weaker impact could boost earnings with fewer claims. Companies like Berkshire Hathaway BRK BRK, Allstate Corporation ALL and Travelers Companies TRV are among the publicly traded companies that could be impacted by insurance claims from the hurricane.
When Hurricane Helene initially struck, insurance companies expected minimal impact. However, as damage estimates rise, concerns grow. After a relatively mild hurricane season, the successive blows from Helene and Milton could pose challenges for insurers offering home, hurricane, and flood coverage.
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