For a closer look at three cold weather stocks expecting to see a boost as the weather cools down and the cozy season heats up, watch the above video.
Weather can play a significant part in consumer behaviours. According to a recent article in The Globe & Mail, “the systematic patterns of weather effects across climates and seasons.”
In a study published in Critical Finance Review, The Globe & Mail reported it suggests that “weather influences stock returns through investor mood, and that the emotional effects of the weather are stronger and more pervasive than previously documented.”
Here are three publicly traded companies that might see a boost during the winter months.
Hanesbrands Inc. (NYSE:HBI)
The trendy sock market is experiencing a demand for eco-friendly socks and has seen a steady incline in Canada since 2020, amounting to US$.40 billion in 2024 and expected to grow at an annual rate of 2.83 per cent from now until 2029.
Hanesbrands Inc. shares have increased almost 75 per cent in one year.
In 2021 when NBA Legend Michael Jordan ended his partnership with the company, shares were around US$21. Shares are currently trading at around US$7.30.
In July, the company singed an agreement to sell its sportswear business to Champion Authentic Brands for US$1.2 billion.
Netflix Inc. (NDAQ:NFLX)
As the chill sets in, Netflix is turning up the heat with shares soaring 12 per cent over the past month. Year-to-date, the stock has gained approximately 62 per cent reflecting growing investor confidence. It recently rolled out its “Moments” feature on iOS, allowing users to share clips and highlights from favourite shows, feeding the binge-watching beast.
On top of that, Netflix is expanding its deal with Comcast Corp.’s NBC Universal, adding rights to stream live-action films to its existing catalog of animated hits from DreamWorks Animation and Illumination. With these exciting developments and a strong commitment to original content, Netflix is primed to keep viewers entertained and cozy as the temperatures dip south of zero.
Campbell Soup Co. (NDAQ:CPB)
The global soup market was valued at more than US$19 billion in 2023 and is projected to grow at an annual compound growth rate of 4.7 per cent from 2024 to 2030.
Reasons for the growth include an increase in health-conscious consumers. Soups are rich in vitamins, minerals, nutrients, and protein, proving to be easy convenience foods for busy lifestyles. Soups are also popular for aging populations to help support nutrition for those on fixed budgets.
After 155 years, Campbell Soup Company is planning to drop “Soup” from its corporate name to adapt to the additional food lines the company has acquired, such as Goldfish and Pepperidge Farm. Campbells also secured a US$3.4 million grant for tomato farming. Company shares are up 15 per cent over the year, last trading at US$46.50.
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