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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom 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. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
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...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
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 ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications 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. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today Telecom Reseller has been named “Media 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.