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
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...