Hurricane Laura to Hurt/Boost These ETF Areas
Zacks Investment Research | Aug 27, 2020 08:00AM ET
Hurricane Laura — 620,000 people were under mandatory evacuation orders in Louisiana and Texas. As quoted on Reuters, “The storm surge could penetrate inland from between Freeport, Texas, and the mouth of the Mississippi River, and could raise water levels as high as 20 feet in parts of Cameron Parish, Louisiana, the National Hurricane center said.”
Below we highlight a few ETFs and stocks those are likely to win or lose from Laura.
h3 Losers/h3 h3 Insurance/h3Severe destruction is likely in Louisiana. Insured losses could be more than $15 billion, as per Bloomberg, as quoted on Yahoo Finance . Property and casualty insurance companies may be hit hard as these are likely to shell out handsomely on claims following such catastrophic storms.
Insurance stocks normally fall more than 1% in the month following the disaster caused by a Category 3 storm , per Kensho, as quoted on CNBC. So the impact of Hurricane Laura on insurance stocks is anybody’s guess.
Already, shares of property and casualty homeowners insurance companies like Universal Insurance Holdings (NYSE:UVE) Inc. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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