With frigid temperatures and blankets of snow defining the winter landscape for much of the nation, investment opportunities are beginning to thaw. Winter isn’t just a time for building frosty snowmen and sipping cocoa by the fireside; for savvy investors, it can also mean the chance to reap hot returns from cold weather stocks.

Mountain Highs: Vail Resorts

Vail Resorts (NYSE:MTN) stands tall as one of the largest owners of ski resorts in the U.S. Winter is unequivocally pivotal to the company’s fate each year. Boasting 41 mountain resorts primarily in the U.S., with additional locations in Australia, Canada, and Europe, Vail Resorts (MTN) positions itself strategically, with six resorts in the Rocky Mountains and seven in New Hampshire and Vermont.

The company’s fiscal 2024 Q1 results were far from stellar, falling short on both the top and bottom lines. Nevertheless, analysts on Seeking Alpha remain predominantly bullish on Vail (MTN), believing that the shares are currently priced right for a strong year ahead.

Wild Rides: Polaris

Polaris (NYSE:PII), known for manufacturing boats and off-road vehicles, including snowmobiles, remains a key player in the winter market. Coupled with a line of winter-ready clothing, the Minnesota-based company caters to winter enthusiasts, offering a range of snowmobile models and dominating a global snowmobile market expected to reach $2.3B by 2032.

Investing Group Leader Gen Alpha gives Polaris (PII) a buy rating, citing its undervaluation and consistent revenue growth over the long term in a glowing analysis released just recently.

Luxury Chill: Canada Goose Holdings

Canada Goose (NYSE:GOOS), prominently known for its high-end down jackets, taps into the luxury market with a majority of its parkas retailing for over $1,000. Despite cutting its fiscal year 2024 EPS and revenue forecasts in November, CEO Dani Reiss unveiled an ambitious five-year growth plan targeting a revenue of $3B by fiscal 2028, hinting at a CAGR of ~20%.

While the plan sounds ambitious, analyst Gary Alexander on Seeking Alpha doesn’t share this optimism, giving Canada Goose (GOOS) a resounding sell rating amid concerns of declining sales and profits.

Snow Business: Douglas Dynamics

Douglas Dynamics’ (PLOW) business revolves around snow plows, salt, and sand spreaders – essential equipment in combating winter’s fury. The company’s performance is intricately tied to the severity of winter weather, a fact underscored by CEO Bob McCormick, who attributed lackluster results to low snowfall on the East Coast in Q3 results.

While the company has witnessed a decline in sales, the 2024 Old Farmer’s Almanac predicts above-average snowfall, potentially hinting at a turnaround for Douglas Dynamics (PLOW).

Salty Waters: Compass Minerals

Compass Minerals (NYSE:CMP), a major producer of road deicing salts in North America and the U.K., finds its fortunes entwined with the onset of winter. However, the company’s shares have plummeted by ~47% over the last year, and Seeking Alpha’s Quant Rating stamps it as a strong sell.