David Sacos
With much of the country experiencing below-freezing temperatures and significant snowfall, winter has arrived.
While winter weather can mean time for fun activities for both kids and adults, it can also provide an opportunity for investors to profit.
With that in mind, here are five winter-oriented stocks that could warm your portfolio no matter how cold the thermometer says outside.
Hotels in Vail
As one of the largest ski resort owners in the U.S., winter is key for Vail Resorts (New York Stock Exchange:MTN) success or failure in a given year. Although the majority of its 41 mountain resorts are located in the US, it also has locations in Australia, Canada and Europe.
Vail Resorts (MTN) benefits from having resorts in key locations, including six in the Rocky Mountains and seven in New Hampshire and Vermont.
Although the company missed the top and bottom line in its fiscal 2024 first-quarter results released in December, Searching Alpha analysts are mostly bullish on Vail (MTN). While admitting that the first quarter results were less than stellar, Searching Alpha analyst Searching Profits believes the stock is currently priced correctly and Vail (MTN) is poised for a strong year ahead.
Like Looking Profits, analyst Quad 7 Capital also has a Buy rating on Vail (MTN). “In our view, this management team has invested adequately for future growth, acquired lucrative properties, built out its attractions, and worked diligently to attract high-value season pass holders,” Quad 7 Capital wrote in a December post .
polar Star
Not to be confused with the North Star in the sky, Polaris (New York Stock Exchange:PII) is a major manufacturer of watercraft and off-road vehicles, including snowmobiles. The Minnesota-based company also makes clothing designed to keep you warm and dry while blasting through winter powder on one of its snowmobiles.
Polaris (PII) offers models in the mountain, crossover, trail, sport utility, wide track, and new rider segments, with prices ranging from $8,000 to $16,800.
The global snowmobile market was $1.6 billion in 2022 and is expected to reach $2.3 billion in 2032, according to Insightful research and consulting.
In a just-released analysis, investment group leader Gen Alpha gives Polaris (PII) a buy rating saying it is undervalued, has a strong position in the outdoor powersports market and has demonstrated consistent growth of long-term income.
Canada Goose Holdings
Canada goose (New York Stock Exchange:GOOS) is best known for its down jackets, many of which are not cheap. Most of his parkas and jackets sell for more than $1,000.
The brand has boosted itself in recent years as a status symbol and luxury manufacturer, and its coats have been worn by notable celebrities. The company competes with other high-end winter clothing brands such as Moncler and Arc'teryx.
In February, CEO Dani Reiss unveiled a five-year growth plan that targets fiscal 2028 revenue of $3 billion, a CAGR of ~20%.
However, the company has had problems lately. In November, it cut both its fiscal 2024 EPS and revenue forecasts.
Seeking Alpha analyst Gary Alexander is also not optimistic about the future of Canada Goose (GOOS), giving the stock a sell rating. “With revenue weakness, earnings deterioration and a big cut to current year expectations, it's a good time to get out of Canada Goose stock.”
Douglas dynamics
Snow plows, as well as salt and sand spreaders, are essential equipment for keeping roads open and safe during snowfall, and that is the heart of Douglas Dynamics' (PLOW) business.
In third-quarter results released in late October, the company saw its net sales decline $22 million year over year to $144.1 million. As a result, adjusted diluted EPS for the quarter was $0.25, compared to $0.57 in the third quarter of 2022.
Through the end of the third quarter, sales also declined compared to the same period in 2022. CEO Bob McCormick attributed the lackluster results to low snow amounts on the East Coast.
Douglas Dynamics (PLOW) results are significantly affected by how severe winter weather can become. The possible good news for the company is that 2024 Old Farmer's Almanac Above-average snowfall is forecast for most snow-prone areas this winter.
Compass Minerals
The next time you see a snowplow dumping salt on a road, chances are it's coming from Compass Minerals (New York Stock Exchange: CMP), which claims to be the largest producer of salt in North America and the United Kingdom.
The company produces three different types of deicing salts for use on roads. The salt business is the company's largest division.
However, Compass Minerals (CMP) is a winter-oriented stock that you may want to hold off on in the cold. The actions are down ~47% over the past year and Searching Alpha's Quant Rating considers the company a strong sell.
