If you followed The Weather Channel this week, you’ll see Hurricane Beryl became the earliest Category 5 storm on record.

Usually you have to wait until September to see a storm of that size, and right now weather experts are expecting 23 named storms this year. That’s almost double the average of 14.4.

Being a resident of Florida, I don’t like to see hurricanes – especially this early in the summer.

And while it’s never fun to think about the life-threatening implications of these storms – I also know that I’m in the investing business. Meaning I have to look at how this impacts the other side.

And one company I pay a lot of attention to around this time of year is Generac (GNRC).

Generac manufactures the power generation equipment people rely on to power their homes during power outages from extreme weather events like hurricanes.

It also ramps up its advertising around this time of year to put the fear of god in everybody so they go out and buy these generators.

As you’ll see in the chart above, Generac is already up more than 15% since March.

Generac’s stock moves based on the perceived probability of disasters which then ramps up demand for their product. And since the hurricane season usually kicks in around June and July, the price isn’t as high as it could be right now.

YOUR ACTION PLAN

GNRC is currently up 19% in our Catalyst Cash-Outs portfolio and we believe there’s still room to grow as hurricane season begins this month. We expect GNRC to peak around September 1st or end of August, which is the height of hurricane season.

To see exactly how we’re playing this volatile but proven stock, click here to unlock our entire Catalyst Cash-Outs portfolio and get access to our weekly livestream.