Winter Winners: Six Industries That Could Reap a Blizzard of Profits

SnowmobileThis winter's series of colossal snow storms have piled up millions of dollars in losses for states, municipalities and businesses. But some industries are reaping an avalanche of added revenue generated from the demand winter weather has created. Expect stock values of big publicly held players in these industries to get a short-term boost when they report earnings for the first three months of 2011.

According to IHS Global Insight, the states of New York ($700 million per day), Illinois ($400 million), Pennsylvania ($370 million), Ohio ($300 million) and New Jersey ($289 million) have suffered the biggest financial wallop from the recent Groundhog Day storm. Perhaps the industry that has lost the most money from this winter's onslaught is the airlines, which have been forced to cancel thousands of flights each time a storm rolls across the nation.

But one industry's blizzard is another industry's windfall. Beyond the obvious bad-weather beneficiaries, such as the oil and energy-related industries, IBISWorld senior industry analyst Toon Van Beeck sees six categories benefiting most from this year's snows, which have affected all 50 states to one degree or another.

Phosphate and other mineral mining: Got salt? Many states and municipalities are close to running out, with most of February and March still to come. Rock-salt mining or quarrying accounts for about 6% of the industry, which surely increased this year with the Midwest and Northeast suffering through multiple severe storms. The top three North American salt producers have been Rohm & Haas/Morton Salt and Cargill, which are privately run, and Compass Mineral Intl. (CMP). Compass Mineral, which started January at about $88 a share, is up 6.6% over the last month and closed at $93.81 on Friday, Feb. 4.

Landscaping services: About 5% of this industry is related to snow and ice removal, but Van Beeck adds that "Lawn and garden care businesses will likely see increased demand once the snow melts as the excessive amounts of snow will have caused substantial damage to greenery that will be in need of repair." Brickman Group, a private company, is possibly the biggest beneficiary in this sector because it has a strong presence in snow and ice management.

Home improvement stores: Home Depot (HD) and Lowes (LOW) will likely benefit from consumers purchasing additional shovels, snow blowers, snow-plow equipment, heaters and salt. "Consumers tend to stock up on these key items in preparation of coming storm systems, and these key retailers are major suppliers to the public," says Van Beeck.

Home Depot shares, which closed at $36.80 on Friday, are up 6.1% over the last month. Lowes is up 0.61% over the last month, closing at $24.71 on Friday.

Online retailers: When snow and bad weather keep consumers from going outside to shop, they shop online. Expect sales on Amazon (AMZN), Overstock (OSTK) and Netflix (NFLX) to move higher in weeks to come, especially if the blizzards persist. "Cabin fever can be cured with some type of retail therapy," says Van Beeck.

Over the last month, shares of Amazon, which ended Friday at $175.93, are down 4.9%. Overstock, which closed at $14.93 on Friday, has lost 9.3%. But Netflix has surged 21.3% in the last month, closing at $220.07 on Friday.

Ski and snowboard resorts: This is a $2.6 billion industry in the U.S., and with all the snow, this season could be as strong as 2007-08 when a record 60 million skiers flocked to U.S. ski resorts. Private companies such as Intrawest, Booth Creek Ski Holdings, Boyne USA Resorts and Aspen Ski Co. will thrive in this brutal winter weather.

Publicly traded Vail Resorts (MTN) should also see higher profits once the season is done. Vail, which traded at $49.01 at the close on Friday, is down 5.68% over the last month.

All-terrain vehicles, golf carts and snowmobile manufacturing: In this $8.15 billion industry, snowmobiles and parts generate 15.3% of revenues. Demand for snowmobiles may increase this year due to larger crowds at ski resorts, but the monster storms have also led to increased snowmobile use for search and rescue at ski resorts and elsewhere. Honda (HMC), Polaris Industries (PII), Deere (DE) and Arctic Cat (ACAT) are the major players likely to benefit.

Honda shares, trading at $43.21 at the close on Friday, are up 9.1% over the last month, while shares of Polaris, which closed at $77.98 on Friday, have risen 4.1% in the last month. Deere is up 12.2% over the last month and closed Friday at $93.21. Arctic Cat ended Friday at $16.81, up a healthy 18.3% over the last month.

Don't let the freezing temps, snow and ice keep you from moving money into these potentially hot areas.

Increase your money and finance knowledge from home

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Reading a Stock Quote

Learn to read the ingredients of a stock.

View Course »

Add a Comment

*0 / 3000 Character Maximum

22 Comments

Filter by:
Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 1:30 AM Report abuse rate up rate down Reply
mac2jr

57 voting districts in the Primary. 50 in the General. Get off it, the subject has been worn out....

February 07 2011 at 8:49 PM Report abuse +2 rate up rate down Reply
Stan

bushwasaliar
3:08 PM Feb 7, 2011
(4)
(9)
OBAMA IS FAR SMARTER THAN BUSH COULD EVER BE...........

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Just a couple of things that Bush new that Obama can not seem to grasp= ! how many states are there in the U.S. 2. When does life begin. Obama seems to not know or afraid to answer! "It is above my pay grade" Whimp!

February 07 2011 at 7:53 PM Report abuse -1 rate up rate down Reply
geoflying

The Pump and Dump Market was cooking today with all that tarp money Bennie is throwing at it.

February 07 2011 at 7:21 PM Report abuse rate up rate down Reply
chris1011

Rep. Paul Broun (R) says innovation would flower if government 'would get out of the way'

Rated 'False' by Politifact

"According to NSF, the federal government funds 57 percent of basic research, compared to less than 18 percent for business, 15 percent for colleges and universiti­es and 11 percent for nonprofits­. And business only funds about 6 percent of university­-based scientific research -- one-tenth the share paid for by the federal government -- so a retreat by government could have wide collateral damage to university research."

"The government has been a major scientific funder for more than half a century. If you add up all the direct research spending in the U.S. since 1953, the federal government has poured in more than $3 trillion. Business has spent an additional $4.5 trillion over that period. (For a quarter century, government expenditur­es on research exceeded those by industry, but around 1980, the pattern reversed.)­"

""Yes, the U.S. has the most dynamic and entreprene­urial economy in the world because it has less regulation and less top-down planning and micromanag­ement than other developed nations," said Margaret O'Mara, a historian at the University of Washington­. "But the high-tech revolution since 1950, and the United States' central role in it, was the result of unpreceden­ted government investment in science and engineerin­g. The critical thing that government does -- and that private-se­ctor research can't do -- is to provide the start-up capital for innovation­s that do not yet have a commercial market."

http://pol­itifact.co­m/truth-o-­meter/stat­ements/201­1/jan/31/p­aul-broun/­rep-paul-b­roun-says-­innovation­-would-flo­wer-if-gov­/

February 07 2011 at 6:57 PM Report abuse rate up rate down Reply
Robert & Lisa

Our socialist public educational system has indoctrinated our children into believing capitalism and freedom is bad and socialism is good. If Socialism is so good, why does the long time socialist government of Mexico boast of being the #1 producer of silver, plenty of oil, and the richest man in the world, yet 99% of their people are in the poverty level making an average of less than 6 dollars a day. Corruption is rampant. The evil, ultra rich see Mexico and want to implement socialism here, where they can have all of the wealth and power and the middle class will now be among the poor. That is what their Demoncrat puppets in the white house and senate are doing to us.

February 07 2011 at 5:07 PM Report abuse +7 rate up rate down Reply
1 reply to Robert & Lisa's comment
sasha

Your manner of reasoning is what is so offensive. You throw out that mexico is a socialist state and then you run with it like that is a fact. Mexico is no more socialist than we are. If we weren't we would have no entitlements. beyond this, just where do you get the idea that an economic theory can be applied to a social construct, in education. And where do you get the idea that schools are teaching that capitalism is bad? And freedom? Is this from FOX, Limbaugh? Where do you get these ideas? Paranoia? Or just lonely BS.?

February 07 2011 at 10:54 PM Report abuse -2 rate up rate down Reply
granaryst

Obama the socialist idiot.

February 07 2011 at 5:05 PM Report abuse +4 rate up rate down Reply
2 replies to granaryst's comment
dterraman

globalist puppet is more accurate

February 07 2011 at 6:21 PM Report abuse rate up rate down Reply
sasha

Obama a socialist????? Who came up with this idea, anyway? Beck? Some other illiterate comedian?

February 07 2011 at 10:55 PM Report abuse -3 rate up rate down Reply
jbmcjbm

Thanks to the steady leadership from the President business will gear up and people will get back to work. I can't remember any president who tackle so many problems and will probably get no credit from the Righties.

February 07 2011 at 1:31 PM Report abuse -1 rate up rate down Reply
3 replies to jbmcjbm's comment
comment2u4

Defination George W. - Robin Hood in reverse!

February 07 2011 at 12:34 PM Report abuse -1 rate up rate down Reply
2 replies to comment2u4's comment
icemanbill23

Before I rate your comment, are you trying to say "definition" or "defamation"?

February 07 2011 at 4:55 PM Report abuse -1 rate up rate down Reply
dterraman

robin stole from the tax collector...whats your point?

February 07 2011 at 6:24 PM Report abuse -1 rate up rate down Reply
moon389

The recent unexpected rally in stock market worries me.... As someone pointed out, it could be due to Fed's money poured to the market, or possibly a mass maniplation by wall street or by foreign countries like China....... If we keep the stock, it could bubble, if we sell it, we have to pay tax wiping out the earning...... Either way, we're screwed.

February 07 2011 at 11:45 AM Report abuse +5 rate up rate down Reply
1 reply to moon389's comment
jbmcjbm

The individual invester left the markets 2yrs ago, only day traders and large trading computers run the market now.

February 07 2011 at 1:22 PM Report abuse +2 rate up rate down Reply