Welcome!

News Feed Item

Zacks Investment Ideas feature highlights: Arctic Cat, Home Depot, Columbia Sportswear and First Trust ISE-Revere Natural Gas ETF

CHICAGO, Jan. 9, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Arctic Cat (Nasdaq:ACAT-Free Report), Home Depot (NYSE:HD-Free Report), Columbia Sportswear (Nasdaq:COLM-Free Report) and First Trust ISE-Revere Natural Gas ETF (AMEX:FCG-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

The Polar Vortex Could Push These Stocks Higher

Thanks to a 'Polar Vortex' of cold air coming down from the North Pole, temperatures have been near records across much of the Midwest and Northeast. Here in Chicago, temperatures with the wind chill approached 50 below zero to start the week, while other cities in the region saw similarly brutal weather.

It also comes following a burst of heavy snowfall which snarled much of both the Midwest and the Northeast, kicking of a particularly unfavorable start to 2014.

Impact

While the weather has hampered many in the transportation industry, and could definitely hit some segments of the food world, not all stocks look to be negatively impacted by the extreme weather. Below, we highlight three companies which have buy ranks and may actually be benefit from increased demand thanks to the wild weather:

Arctic Cat (Nasdaq:ACAT-Free Report)

ACAT had a great 2013 selling a variety of snowmobiles and ATVs to the general public, as its stock appreciated by more than 60% on the year. This Minnesota-based company could also see some solid trading in 2014 too, especially if demand remains robust for its key cold-weather focused products in this snowy weather.

Earnings estimates were already moving higher for ACAT before the storm, suggesting that trends were still moving in the right direction. In fact, all the estimate revisions for the current quarter and the current year have been higher, while EPS growth (yoy) is expected to come in at 72% for next quarter.

ACAT currently has a Zacks Rank #2 (Buy), and its industry is actually ranked in the top 5% too. So even if ACAT doesn't see a storm boost, this may be a stock to keep your eye on this winter.

Home Depot (NYSE:HD-Free Report)

Home Depot is a massive home improvement retailer, and though it has a huge base of operations, the company could see a modest uptick from the weather. That is because demand for a variety of products that HD sells could spike—be it anything from insulation and space heaters to shovels and snow blowers—suggesting more good days could be ahead for this Dow component.

Best of all, the earnings picture was already looking quite good for HD, as estimates were moving almost universally higher for the full year time frame. The consensus was also trending higher for this stock, while earnings misses are pretty rare too.

Thanks to this, HD has a Zacks Rank #2 (Buy), and could see a small increase for its current quarter earnings too, especially if extreme weather stays common this winter.

Columbia Sportswear (Nasdaq:COLM-Free Report)

Although Columbia makes a variety of outdoor apparel products, its coats—with special linings designed to keep the heat in—might see an increase in demand thanks to the extreme cold. The company also sells a variety of other clothing items and accessories, and if the weather stays like this for a while, it could boost demand for COLM's entire lineup of apparel.

Earnings estimates have also been trending higher for this company, as estimates have risen a little bit for both the current year and the next year time frames. Analysts seem to be in agreement on the firm's long term prospects too, as not a single estimate has gone lower for the current year or next year periods in the past 60 days.

Though COLM is in a rough industry, the stock has secured a Zacks Rank #2 (Buy). And with the winter weather potentially just getting started—and the Winter Olympics just around the corner—this may be another stock to watch for further gains in the months ahead.

Bonus: First Trust ISE-Revere Natural Gas ETF (AMEX:FCG-Free Report)

When temperatures are plunging into near record levels, many people had to turn up the heat and leave it running for quite some time. And when this happens, many utilities have to tap into natural gas as a fuel to meet this extra demand.

Thanks to this, we might see an uptick in natural gas usage that far exceeds normal, leading to a modest increase in prices. While investors can try their luck with the futures market, a play on natural gas producers might be a lower risk play, such as with FCG.

This ETF holds a basket of companies in the natural gas space, focusing on firms in the exploration and production segment. Value metrics, correlation with natural gas prices, and ROE are all used to rank the stocks, and the top 30 are included in the final portfolio and then the fund.

FCG currently has a Zacks ETF Rank #2 (Buy), and could be an interesting pick for investors who are looking for more natural gas demand ahead.

Bottom Line

Weather has been pretty extreme across much of the country, and it has likely led to economic losses in many parts of the nation. However, some companies and sectors do look to benefit from these brutal temperatures and heavy snowfall, and could actually come out ahead.

Plus, the companies—and the ETF—highlighted above all have Zacks Ranks of 2 or better. This suggests that they already were looking quite good before the storms hit, but with the higher demand that may result from the weather, they may see solid days ahead as well.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on ACAT – FREE

Get the full Report on HD – FREE

Get the full Report on COLM – FREE

Get the full Report on FCG – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...