Winter weather could mean hot returns for these stocks (NYSE:MTN)

With much of the country having experienced below freezing temperatures and significant snowfall, winter has arrived.

While winter weather can mean time for fun activities for children and adults alike, it can also provide an opportunity for investors to profit.

With this in mind, here are five winter-oriented stocks that could warm up your portfolio no matter how cold the thermometer says it is outside.

Vail Resorts

One of the largest owners of ski resorts in the U.S., winter is critical for Vail Resorts’ (NYSE:MTN) success or failure in a given year. Though most of its 41 mountain resorts are in the U.S., it also owns locations in Australia, Canada, and Europe.

Vail Resorts (MTN) benefits from having resorts in key locations, including six in the Rocky Mountains and seven across New Hampshire and Vermont.

Though the company missed on the top and bottom lines in its fiscal 2024 Q1 results released in December, Seeking Alpha analysts are mostly bullish on Vail (MTN). While conceding that Q1 results weren’t stellar, Seeking Alpha analyst Seeking Profits believes that shares are currently priced right and Vail (MTN) is set for a solid year ahead.

Like Seeking Profits, analyst Quad 7 Capital also has a buy rating on Vail (MTN). “This management team has, in our opinion, invested properly for future growth, acquired lucrative properties, built out its attractions, and has diligently worked to attract highly valuable season pass holders,” Quad 7 Capital wrote in a December post.

Polaris

Not to be confused with the North Star in the sky, Polaris (NYSE:PII) is a key manufacturer of boats and off-road vehicles, including snowmobiles. The Minnesota-based company also makes clothes designed to keep you warm and dry as you tear through the winter powder on one of their snowmobiles.

Polaris (PII) offers models in mountain, crossover, trail, sport utility, widetrack, and new rider segments, ranging in price from $8K to $16.8K.

The global snowmobile market was $1.6B in 2022 and is expected to reach $2.3B by 2032, according to Acumen Research and Consulting.

In a just released analysis, Investing Group Leader Gen Alpha gives Polaris (PII) a buy rating saying it is undervalued, has firm positioning in the outdoors powersports market, and has demonstrated consistent revenue growth over the long term.

Canada Goose Holdings

Canada Goose (NYSE:GOOS) is best known for its down jackets, many of which don’t come cheap. A majority of their parkas and jackets retail for over $1K.

The brand has been buoyed in recent years as a status symbol and luxury manufacturer, with its coats being worn by prominent celebrities. The company competes against other high-end winter wear clothing names such as Moncler and Arc’teryx.

In February, CEO Dani Reiss unveiled a five-year growth plan that aims for fiscal 2028 revenue of $3B, a CAGR of ~20%.

However, the company has been struggling of late. In November, it cut both its fiscal year 2024 EPS and revenue forecasts.

Seeking Alpha analyst Gary Alexander also isn’t optimistic about Canada Goose’s (GOOS) future, giving the stock a sell rating. “With top-line weakness, profit deterioration, and a large 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 to keep roads open and safe during snowfall, and that’s the heart of Douglas Dynamics’ (PLOW) business.

In its Q3 results released in late October, the company saw its net sales decline $22M year over year to $144.1M. As a result, adjusted diluted EPS for the quarter was $0.25, which compares to $0.57 in Q3 2022.

Year to the end of Q3, sales are also down compared to the same time period in 2022. CEO Bob McCormick blamed the lackluster results on low snowfall amounts on the East Coast.

Douglas Dynamics’ (PLOW) bottom line is significantly impacted by how severe winter weather can get. The potential good news for the company is that the 2024 Old Farmer’s Almanac is predicting above average snowfall for most snow-prone areas this winter.

Compass Minerals

The next time you see a snow plow drop salt on a roadway, there’s a good chance it came from Compass Minerals (NYSE:CMP), which claims to be the largest producer of salt in North America and the U.K.

The company produces three different types of deicing salts for road use. The salt business is the company’s largest division.

However, Compass Minerals (CMP) is one winter-oriented stock you may want to leave out in the cold. Shares are down ~47% over the last year and Seeking Alpha’s Quant Rating views the company as a strong sell.