BUTLER, PENNSYLVANIA – OCTOBER 05: Elon Musk embraces Republican presidential nominee, former … [+] President Donald Trump during a campaign rally at the Butler Farm Show fairgrounds on October 05, 2024 in Butler, Pennsylvania. This is the first time that Trump has returned to Butler since he was injured during an attempted assassination on July 13. (Photo by Anna Moneymaker/Getty Images)
The U.S. Presidential election is nearing its curtain call. And from the look of things, this is going to be yet another photo finish. If you think Trump’s Make America Great Again campaign did enough to get him past the finishing line – and into the White House – for a second term, then here is a list of stocks that you could bet on to make the most of market movements in the near term.
The stocks that we believe will benefit the most from Trump’s return to office are:
Trump Media & Technology Group (NASDAQ:DJT)
DJT is a no-brainer, since Trump is the majority shareholder in the company which operates the social media platform Truth Social. Admittedly, the stock has been extremely volatile over the last one year, with prices swinging between a low of $11.75 and a high of $79.38 over this period. While the stock has gained 75% so far this year, it fell more than 30% last week. The stock should see significant gains if Trump wins, but be prepared for more such wild swings till the result is locked in.
Rumble (NASDAQ:RUM) and Phunware (NASDAQ:PHUN)
Two more companies that are directly associated with Trump, and should see a big win with Trump. Rumble is an online video platform and cloud services business that hosts Truth Social, and Phunware is a mobile software company that provided campaign data and also built a reelection app for Trump in the past. While both stocks have been very volatile, like DJT, since the beginning of this year, trading activity in RUM has been more stable in the last six months – making it the better pick among the two.
Tesla (NASDAQ:TSLA)
Elon Musk has been a vocal supporter of Trump, and the time (and money) invested by the billionaire inventor on the Trump campaign is expected to yield strong returns for his companies if Trump wins. We detailed the entwined fates of Trump and Tesla in Musk’s Trump Card: Will Tesla Be Boosted Or Totaled? and Can Trump Take Tesla Stock To $0? There is no denying that TSLA stock stands to gain big from a Trump win – both near- as well as long-term. Besides the personal camaraderie between Trump and Musk, Trump’s frequent calls for higher tariffs for Chinese imports (including Chinese-made EVs) should directly help Tesla sell more cars in the U.S.
Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL)
Stocks of the two largest oil service companies in the world have had a very forgettable year, with both of them losing 25% of their value so far. But that could change very quickly if Trump emerges victorious. Trump’s support for oil and gas companies will reflect in favorable policies by his administration policies toward conventional energy companies which took a backseat to renewable energy companies under Biden’s administration. Schlumberger and Halliburton stand out in particular among oil and gas companies because their stocks are less volatile in the near term than those of diversified energy companies such as Exxon Mobil or Chevron. And both SLB and HAL figure among the most undervalued Energy stocks in our analysis.
Bank of America (NYSE:BAC) and Citigroup (NYSE:C)
Several of Trump’s poll promises look better for U.S. businesses as a whole – particularly his talks about additional cuts to corporate taxes. The round of tax cuts he introduced in 2017 had a tangible impact on overall business sentiment and banks benefited in particular from the increased level of activity across industries. We expect a similar benefit for banks this time, too, if Trump returns, with the diversified banking giants gaining the most due to their strong presence in retail, private, commercial as well as corporate banking services. Both BAC and C are good picks in the event of a Trump win as we believe they are among the most undervalued Diversified Bank stocks
But what if you are looking at a longer investment horizon?
All the stocks above are great near-term picks in the event Trump wins the U.S. elections. But that is not the only possible outcome of this election. And election-related trends will soon give way to long-term trends across industries. In the long run, the stocks you pick should add value to your portfolio without being too volatile. The Trefis High Quality Portfolio, with a collection of 30 stocks has outperformed the S&P 500 each year over the period 2021-2023. And as a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
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