Key Takeaways
- Much of the U.S. could face harsh winter weather in the days to come, with sub-zero temperatures and heavy snow expected across several regions.
- Natural gas prices, along with stocks and ETFs related to the sector, have surged this week.
It’s about to get extremely cold in much of the United States, but some stocks are only getting hotter.
Shares of backup power generator and energy equipment maker Generac (GNRC) have rallied over 10% this week amid worries harsh winter weather could cause power outages. Exchange-traded funds that track the natural gas and energy sectors have soared too, with the U.S. Natural Gas Fund (UNG) and ProShares Ultra Bloomberg Natural Gas (BOIL) popping 34% and 70%, respectively, since the week began.
Other natural gas and oil producers including EQT Corp. (EQT), Expand Energy (EXE), and ExxonMobil (XOM) have also climbed in recent days despite pulling back slightly Thursday afternoon.
Why This Matters to You
Severe winter weather can stoke demand for resources used to heat millions of homes around the U.S., which can in turn lift shares of the companies such as those that produce natural gas or emergency equipment like generators.
Much of the U.S. is expected to face harsh cold and heavy snow through the weekend, with windchill temperatures as low as negative 50 degrees Fahrenheit and anywhere from several inches to feet of snow expected in different regions of the country.
Commodities including natural gas prices have surged this week both in the U.S. and abroad, as cold fronts are also expected to impact Europe and China in the coming days. Those increases could take time before they are felt by consumers paying to heat their homes.
