While it’s not a hurricane just yet, “Nicole” could hit Florida’s east coast by Thursday.
“Don’t let the ‘sub’ fool you. #Nicole is a formidable storm that will have major impacts all along the southeastern U.S. coastline, not only near the center. Coastal flooding, large waves and rip currents will extend from the tip of FL to NC,” the National Weather Service tweeted.
With that, keep an eye on home improvement stocks, like Home Depot (HD).
That’s because this segment is “naturally positively exposed to preparation and recovery efforts,” says Morgan Stanley. These “typically see a boost in sales post-storm as damaged property is repaired.”
Also, in mid-October, Cowen analyst Max Rakhlenko initiated an outperform rating on the stock with a price target of $350. As noted by TheFly.com, “Rakhlenko is constructive on the opportunity to grow share, increase sales productivity, accelerate the flywheel, and expand EBIT margin as Home Depot’s Pro ecosystem comes together. He contends that Home Depot is a best-in-class operator with leading Pro share, which positions the retailer to better withstand a slowing backdrop in the near-term, and accelerate on the other side.”
Home Depot last traded at $290.27. From here, we’d like to see it closer to $330.