5 Stocks Likely to Be Hot In New Trump Era
With Donald Trump re-entering the White House, several sectors and industries may benefit from his policy direction. The following five stocks could experience gains under a second Trump presidency, thanks to anticipated regulatory shifts and policy stances.
JPMorgan Chase
Market Value: $623.6 billion
Sector: Financial Services
Industry: Banks
As the largest bank in the U.S. with $3.9 trillion in assets, JPMorgan Chase could see positive impacts from Trump’s anticipated deregulation-focused policies. Trump’s previous term favored reduced oversight for financial institutions, a stance likely to continue. CEO Jamie Dimon has emphasized the need for unity and transparency in the country’s leadership, calling for policies that benefit the economy as a whole. Wall Street analysts generally recommend JPM as a Buy, with Argus Research highlighting its strong credit-card franchise and lending growth potential as attractive factors for investors.
Lockheed Martin
Market Value: $128.5 billion
Sector: Industrials
Industry: Aerospace & Defense
Defense stocks, including Lockheed Martin, often perform well under Republican administrations, which traditionally increase defense spending. Trump's hawkish stance on national security could mean increased demand for military technology, including the F-35 fighter jets manufactured by Lockheed. Analysts are generally bullish on the stock, with Argus Research citing Lockheed's international diversification and continued growth in defense spending as key strengths. This positive outlook suggests Lockheed is a potential buy for investors seeking stable growth in the defense sector.
Exxon Mobil
Market Value: $522.8 billion
Sector: Energy
Industry: Oil & Gas
Trump’s pro-energy policies, including support for deregulation, could benefit Exxon Mobil. His stance may ease restrictions on fracking and expand fossil fuel production, policies that appeal to energy-dominant states like Pennsylvania. UBS analyst Josh Silverstein holds a Buy rating for Exxon Mobil, with expectations that growth in the company's upstream operations, new downstream capacity, and low-carbon investments will drive further returns. Given Trump’s inclination toward traditional energy sources, Exxon Mobil remains a strong choice for those looking at the energy sector.
Nucor
Market Value: $34.3 billion
Sector: Basic Materials
Industry: Steel
Steel production could be boosted under a Trump administration, as he’s likely to reintroduce tariffs to protect domestic manufacturing. Nucor, a major U.S. steel producer, is poised to gain from decreased competition from foreign imports. Although recent economic factors have slowed Nucor’s sales, Argus Research views the company’s commitment to long-term growth as a reason to consider it a buy. This outlook, combined with the potential for Trump to impose import restrictions, could help Nucor regain momentum.
GEO Group
Market Value: $2.1 billion
Sector: Industrials
Industry: Security & Protection Services
GEO Group operates private prisons and detention centers, making it a potential beneficiary of Trump’s expected immigration policies. A Trump-led administration could expand detention facilities, increasing demand for GEO’s services. Wedbush analyst Brian Violino has an Outperform rating on the stock, noting that investor sentiment could favor GEO if Trump wins. Given the company's past support for Republican causes, a Trump presidency could bolster GEO’s growth through new federal contracts and infrastructure expansion.
These five stocks across finance, defense, energy, steel, and security are positioned to gain under Trump’s policies, providing potential growth opportunities for investors in a range of industries.
Final Thoughts
Coupled with lower interest rates and the installation of a business-friendly executive and legislative branch, the market is poised to offer some big winners in the next four years. However, your spider investor senses must operate on overdrive to profit from it. Ensure to do copious research and always stay in your comfort zone.
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