The boons of Hurricane Harvey started being felt slowly as evident from the biggest increase in retail sales in the month of September since March 2015. Sales increased 1.6% sequentially in September 2017, slightly below market expectations of a 1.7% but rebounding from a biggest increase decline in August. On a year-over-year basis, retail sales rose 4.4% following 3.2% gains recorded in August.

Some analysts expected this rebound following subdued sales in the last two months. Hurricane Harvey flooded Texas at August-end and Irma demolished Florida in early September. So, purchase of new cars, higher replacement demand and a pickup in economic activity was understandable post hurricanes (read: ETF & Stocks to Buy on Rebounding September Auto Sales).

Out of the 13 key sectors, eight registered expansion last month. Below we recommend a few ETFs & stocks that are likely to be the prime beneficiaries of this retail sales improvement.

Auto

A rebound in sales among auto dealerships was noticeable in September, with a 3.6% increase following a 1.5% rise in August. Hurricane Harvey dented thousands of new vehicles that were in dealership lots, according to an analysis from Edmunds. Those new cars and trucks probably were ‘scrapped,’ if we go by the CEO of AutoNation.

The car-shopping website estimates that Harvey affected 366,000 new vehicles across Texas. So, repurchase of cars will gain traction over the medium term on higher replacement demand for damaged vehicles.  

AutoNation’s CEO also emphasized that “there will be a substantial snapback either in the fourth quarter or the first quarter of next year.” First Trust NASDAQ Global Auto Index Fund (CARZ – Free Report) can thus gain ahead (read: Harvey: Pain or Gain Ahead for Auto Stocks and ETFs?)

Investors can also have a look at Zacks Rank #1 (Strong Buy) Dana Inc. (DAN – Free Report). The company is a provider of technology driveline, sealing and thermal-management products. The Zacks Industry Rank of the stock is in the top 9% and it has a VGM (Value, Growth, Momentum) Score of A.