Hurricane Rafael made landfall in Cuba as a Category 3 storm on Wednesday. Here's a look at what stocks could be affected as the hurricane takes aim at the Gulf of Mexico.

What To Know: According to a report from Fox Weather, Hurricane Rafael made landfall in the Cuban province of Artemisa with sustained winds of 115 miles per hour, making it a Category 3 hurricane. The storm is expected to enter the Gulf of Mexico on Wednesday night and residents along the coast from Florida to Texas will be watching the storm's path.

What To Watch: Hurricanes affect people, homes and companies in their paths and spread wide-reaching effects on various sectors and industries. Insurance companies see an influx of claims resulting from damage to property and vehicles. Homes will have to be repaired and rebuilt driving sales of lumber, windows and sheetrock higher. Power outages cause consumers to seek portable generators as an alternative way to power their homes.

Home improvement stores like Home Depot Inc. (NYSE:HD) and Lowe's Companies, Inc. (NYSE:LOW) could see a pop in sales as people rush to secure their homes before the storm and repair damage after.

Generac Holdings Inc. (NYSE:GNRC) designs and manufactures standby generators and portable generators and often sees its shares rise before and after major weather events.

Shares of insurance companies tend to drop after natural disasters and investors may want to keep an eye on Allstate Corp. (NYSE:ALL), Travelers Companies, Inc.(NYSE:TRV) and Chubb Ltd. (NYSE:CB) in the days and weeks following a potential landfall from Hurricane Rafael.

Power companies including Duke Energy Corp. (NYSE:DUK) and Southern Company (NYSE:SO) could face increased labor costs and additional costs to repair infrastructure after the storm.

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Photo: Hurricane Rafael as a tropical storm, 11.5.2024. Courtesy the NOAA/Public Domain