A worker unloads a 24-kilowatt Generac home generator from a truck at Captain Electric on February 18, 2021 in Orem, Utah.
George Fry | Getty Images
Backup Power Generation Company shares Generac Holding Company It rose more than 7% on Monday as Hurricane Milton quickly intensified into a Category 5 storm.
Milton is expected to move north of the Yucatan Peninsula on Monday and Tuesday before crossing the Gulf of Mexico to approach the west coast of Florida by Wednesday, according to the National Hurricane Center. Tampa Bay could face storm surge between eight and 12 feet, according to forecasts.
Generac reached an intraday high of $174.08, up about 8.7% from Friday's close. The power generation company also reached a new 52-week high.
Milton comes on the heels of Hurricane Helen, which killed more than 220 people and wreaked devastation across the Southeast, especially in North Carolina.
Meanwhile, insurance stocks exposed to weather catastrophes are falling on potential insurance losses related to Hurricane Milton. Allstate and Travelers Chubb Their shares saw a decline of more than 3%, while Progressive and American International Group They all fell by more than 1%.
Universal Insurance, headquartered in Ft. Lauderdale, down more than 15% as the disaster-prone carrier with exposure to the Gulf Coast could see increased hurricane risks.
Property and casualty insurance and reinsurance stocks should come under pressure as Milton could lead to a sharp drop in fourth-quarter earnings, Joshua Shanker, a research analyst at Bank of America, told clients in a note Monday.
For months, meteorologists have warned of a “very active hurricane season in the Atlantic Ocean” this year. This is due to warm sea surface temperatures that serve as a fuel source for hurricanes, according to Colorado State University's Tropical Weather and Climate Research.
