We recently published a list of 10 Best Hurricane and Natural Disaster Stocks To Buy Now. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other best hurricane and natural disaster stocks to buy now.
The 2024 hurricane season is shaping up to be a highly active one, especially in the North Atlantic. Forecasts suggest that the number of tropical cyclones this year could exceed the long-term average. Although it’s difficult to predict how many storms will make landfall and where they will hit, a higher number of storms increases the chances of multiple landfalls, posing a significant risk to the Gulf of Mexico and Caribbean Sea regions.
Leading research institutes expect approximately 23 named cyclones in the North Atlantic this year, with 11 potentially developing into hurricanes. Of these, five could become severe hurricanes with wind speeds exceeding 110 mph. These estimates are considerably higher than the long-term average observed between 1950 and 2023, which was 12 named storms, 6 hurricanes, and nearly 3 severe hurricanes each season.
Sea surface temperatures in the tropical North Atlantic are currently at record highs, between 0.5 and 1.0°C above the historical average, creating conditions favorable for hurricane development. Furthermore, the natural climate oscillation ENSO (El Niño/Southern Oscillation) is expected to shift to a La Niña phase. This shift typically reduces high-altitude wind shear, which in turn makes it easier for tropical cyclones to develop and intensify.
Given these factors, the likelihood of severe hurricanes making landfall this season is heightened. This means that companies involved in infrastructure, construction, insurance, and emergency response could see increased demand for their products and services. Hurricanes not only cause billions of dollars in property damage but also disrupt various sectors, from utilities and energy to real estate and transportation. Thus, investing in companies that specialize in disaster recovery, property restoration, and related services could be a strategic move.
In this article, we will explore the ten best hurricane and natural disaster stocks to buy now. These companies are well-positioned to benefit from the potential increase in hurricane activity and the demand for services that follow in the wake of natural disasters. Whether through providing emergency equipment, offering insurance coverage, or assisting in rebuilding efforts, these stocks could present an opportunity for investors looking to hedge against the financial impacts of natural disasters.
Sources like Munich Re, the World Meteorological Organization (WMO), and the International Labour Organization (ILO) have provided valuable insights into the 2024 hurricane season, highlighting the increased risks and potential economic impacts. With that in mind, let’s dive into our list of the best stocks to consider for this hurricane season.
Our Methodology
The companies featured in this list are known to experience increased demand following hurricanes and natural disasters. To provide prospective investors with valuable insights, we’ve also highlighted key business fundamentals and analyst ratings for these stocks. Additionally, we reviewed data from approximately 912 elite hedge funds tracked by Insider Monkey during the second quarter of 2024 to determine hedge fund ownership for each company. From this dataset, we selected the top ten stocks most favored by institutional investors and ranked them in ascending order based on the number of hedge funds holding stakes in these firms as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 95
Walmart Inc. (NYSE:WMT) operates one of the largest retail networks globally, offering a diverse range of products and services through its Walmart U.S., Walmart International, and Sam’s Club segments. The company is a compelling pick for the list of ten best hurricane and natural disaster stocks to buy now due to its strong distribution network, essential product offerings, and capability to support affected regions during natural disasters. With over 10,500 stores in 20 countries, Walmart Inc. (NYSE:WMT) has the reach and resources to ensure the availability of critical goods in times of crisis.
Walmart Inc. (NYSE:WMT) recently reported strong Q2 2025 results, with an earnings per share (EPS) of $0.67, surpassing expectations of $0.646. This marks continued robust financial performance, driven by broad-based strength across all its segments. Total net sales grew by 4.9% on a constant currency basis, with global e-commerce sales increasing 21%. The company also saw growth in its U.S. comparable sales, which rose by 4.2%, underpinned by strong customer traffic and unit growth across stores and digital channels.
Walmart Inc. (NYSE:WMT) commitment to expanding its digital infrastructure has also been a key contributor to its resilience. E-commerce sales in the U.S. surged by 22% during the quarter, while internationally, Walmart achieved 18% growth in digital channels. This strong digital growth is crucial during natural disasters, as it enables Walmart Inc. (NYSE:WMT) to continue serving its customers through online orders and deliveries even when physical stores face disruptions.
The company’s focus on operational efficiency and cost controls has improved profitability, with operating income growing faster than sales. Walmart Inc. (NYSE:WMT) ability to leverage technology, such as generative AI, for supply chain automation and inventory management has been a game-changer, contributing to margin expansion.
Hedge fund interest in Walmart has also increased, with 95 hedge funds holding the stock as of Q2 2024, up from 88 in the previous quarter. This demonstrates confidence in Walmart Inc. (NYSE:WMT) fundamentals and growth outlook. Overall, Walmart Inc. (NYSE:WMT) extensive distribution network, diverse product portfolio, and strong financial performance make it a reliable choice for investors looking to gain exposure to hurricane and natural disaster-related stocks.
Overall, WMT ranks 1st on our list of Best Hurricane and Natural Disaster Stocks To Buy Now. While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.