As the United States grapples with extreme cold and heavy snowfall, these stocks are on the rise

Main Points

• Large portions of the United States are bracing for intense winter conditions, with forecasts calling for frigid temperatures below zero and significant snowfall in multiple areas.
• This week has seen a notable jump in natural gas prices, as well as in the value of related stocks and exchange-traded funds (ETFs).

While much of the country is preparing for a deep freeze, certain stocks are experiencing significant gains.

Generac (GNRC), a company specializing in backup generators and energy solutions, has seen its stock price climb more than 10% this week amid concerns that severe winter storms could disrupt power supplies. ETFs focused on natural gas and energy, such as the U.S. Natural Gas Fund (UNG) and ProShares Ultra Bloomberg Natural Gas (BOIL), have also soared, rising 34% and 70% respectively since the start of the week.

Other companies in the natural gas and oil sector, including EQT Corp. (EQT), Expand Energy (EXE), and ExxonMobil (XOM), have also posted gains recently, despite some minor declines on Thursday afternoon.

Why This Is Important

Extreme winter weather often increases the need for heating resources across the country, which can boost the performance of companies that supply natural gas or manufacture emergency equipment like generators.

Forecasters predict that much of the U.S. will continue to experience bitter cold and heavy snowfall through the weekend, with wind chills potentially dropping to minus 50 degrees Fahrenheit and snow accumulations ranging from several inches to several feet depending on the region.

Commodities such as natural gas have seen prices spike this week both domestically and internationally, as cold weather is also forecasted for Europe and China. However, it may take some time before these price increases are reflected in consumer heating bills.