How Disney, theme parks and insurance companies could be affected

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Florida is bracing for another hurricane to land this week, less than two weeks after Hurricane Helene.

Here’s a look at the forecast and stocks to watch.

Hurricane Milton is intensifying: Less than two weeks after Hurricane Helene hit Florida, Hurricane Milton is intensifying into a potential Category 4 or Category 5 storm that will make landfall in the state on Wednesday.

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CNN reported that the storm has grown in size and is now considered a Category 3 hurricane. According to the report, the growing size of the storm could affect a larger area of ​​Florida than the last hurricane.

Milton is expected to hit Florida’s Gulf Coast, with the state already declaring a state of emergency and working on evacuations. Hillsborough County, which includes Tampa, is among the areas expected to call for evacuations on Monday.

Several school districts across the state closed school Monday.

Director of the Florida Division of Emergency Management Kevin Guthrie said Sunday that the storm could lead to the state’s largest evacuation of 2017.

“I urge Floridians to complete your storm preparations now, put your plan in place,” Guthrie said Sunday.

Governor of Florida. Ron DeSantis warned residents of the potential for more power outages in the state than in Helene.

Milton’s timing could create a double whammy for the state of Florida and surrounding regions still recovering from Helene.

“You get hit by a major hurricane, what’s going to happen to that debris? It’s going to dramatically increase the damage,” DeSantis said.

Existing and additional debris could also obstruct paths for emergency personnel.

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Stocks to watch: While Florida’s theme parks largely avoided closures from Helene, the region’s newest hurricane could have a significant impact on the sector.

The story continues

Orange County, where Orlando is located, is one of the counties under a state of emergency ahead of Hurricane Milton’s landfall.

Walt Disney World, owned by The Walt Disney Company (NYSE:DIS), is among the theme parks that could face closures due to weather, missed revenue opportunities and refunds. The theme park is open on Mondays, but as of Sunday it has stopped taking reservations for Tuesday and Wednesday, Florida Today reported.

Disney World has closed for several hurricanes in the past, most recently for Hurricane Ian in 2022. The theme park was able to escape Helene with minimal impact on outdoor activities and nighttime entertainment events that were canceled.

Universal Studios in Orlando, which is owned by Comcast Corporation (NASDAQ:CMCSA), could also face closures and cancellations due to the storm’s current track.

Power companies such as Duke Energy ( NYSE:DUK ) and Southern Company ( NYSE:SO ) are among the utilities that could see a large number of customer outages. Businesses could face increased labor costs and additional costs to repair infrastructure after the storm.

While theme park stocks could be negatively impacted by Hurricane Milton, several other stocks and sectors could benefit from the storm and pending damage.

Home improvement retailers such as Home Depot ( NYSE:HD ) and Lowe’s Companies ( NYSE:LOW ) traditionally profit from hurricane recovery efforts. With the potential for increased damage from back-to-back hurricanes, home improvement retailers could see increased demand in storm-affected regions.

Generac Holdings ( NYSE:GNRC ) is another company that could benefit from hurricanes as demand for generators increases. Shares of Generac hit new 52-week highs on Monday in anticipation of Hurricane Milton.

One sector facing uncertainty is insurance, as severe hurricane damage could hurt profits, but a weaker impact could boost earnings with less damage. Companies such as Berkshire Hathaway ( NYSE:BRK ) ( NYSE:BRK ) , Allstate Corporation ( NYSE:ALL ) and Travelers Companies ( NYSE:TRV ) are among the publicly traded companies that could be hit by insurance claims from the hurricane.

When Hurricane Helene initially hit, insurance companies expected minimal impact. However, as damage estimates rise, concerns grow. After a relatively mild hurricane season, back-to-back hits from Helene and Milton could pose challenges for insurers offering home, hurricane and flood coverage.

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This article Hurricane Milton is Florida’s second storm in two weeks: How Disney, theme parks and insurance companies could be affected originally appeared on Benzinga.com