As Hurricane Milton approaches Florida’s Gulf Coast, its potential impact spans several sectors, including building materials, banks, and hotels. Described as ‘a dangerous major hurricane’ by the National Hurricane Center, Milton is expected to make landfall late Wednesday.

Building Supplies

The current trajectory of Hurricane Milton could significantly impact the densely populated Tampa/St. Pete area, driving up repair demand. Truist Securities analyst Keith Hughes notes that small changes in the storm’s path before landfall can dramatically affect the building product and durable goods industries. Roofing companies like Beacon Roofing Supply Inc. (BECN) and Owens Corning (OC) are particularly exposed if the storm hits areas with dense housing. Flooring retailer Floor & Decor Holdings Inc. (FND) could also see increased demand due to water damage repairs.

Banks

D.A. Davidson analyst Gary Tenner highlights the potential impact on banks in hurricane-affected areas. Post-hurricane periods typically see a deposit boost related to insurance settlements, elevated short-term expenses, and provision for rebuilding efforts. Banks such as Regions Financial Corp. (RF), Fifth Third Bancorp (FITB), Synovus Financial Corp. (SNV), SouthState Corp. (SSB), Cadence Bank (CADE), and Hancock Whitney Corp. (HWC) may be affected. Tenner notes that banks could face elevated expenses related to disaster response, property damage, and other operating costs. However, insurance is likely to cover a portion of these costs over time. In the longer term, banks may see a surge in deposits as customers take a conservative approach to spending and benefit from disaster relief funds.

Hotels

Hurricane Milton is also expected to impact the hotel sector. Bernstein Societe Generale Group analyst Richard Clarke notes that hurricanes can be beneficial for hotel groups as they provide temporary housing for evacuated residents, outweighing the loss of business in affected areas. Major hotel groups in Florida, such as Hilton Worldwide Holdings Inc. (HLT), InterContinental Hotels Group PLC (IHG), Hyatt Hotels Corp. (H), and Marriott International Inc. (MAR), may see some upside in third-quarter numbers.

Disney’s Operational Changes

Walt Disney Co. (DIS) has made several operational changes at Walt Disney World in anticipation of the storm. The phased closure of theme parks and the Disney Springs shopping complex began Wednesday, with potential reopening planned for Thursday afternoon. Disney’s Fort Wilderness Resort & Campground and the Treehouse Villas at Disney’s Saratoga Springs Resort & Spa will temporarily close starting Wednesday.

Hurricane Milton’s approaching landfall could have widespread implications across various sectors. The storm’s path and intensity will ultimately determine the extent of its impact. For businesses and investors, understanding these potential effects is crucial in navigating the challenges and opportunities that arise from such natural disasters.

Join the Conversation: How do you think Hurricane Milton will affect different sectors? Share your insights and engage with the community! 💬

HurricaneMilton #BuildingSupplies #Banking #Hotels #RealEstate #DisasterPreparedness

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What are your thoughts on the potential impacts of Hurricane Milton? Let’s discuss below! 💬🌪️

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