Introduction
Now don’t already get all up in arms.
I’ll be writing a similar article relating to having a democrat in office as well.
Given the title of this article, this isn’t going to exactly be the average stock analysis article, but rather a somewhat brief outline of some of the industries and specific publicly traded companies that I think stand much to gain from a republican, specifically former president Donald Trump in the Oval Office.
Before diving into some of these companies, it can be most objectively said that the stock market tends to perform better when a republican is at the helm of the United States, due to past party leaders largely ascribing to the ideology of capitalism, or free markets, thus inherently being pro-trade and economic expansion both stateside but also with agencies and other countries and global trade partners. Additionally, republicans tend to pursue tax cuts across the board which tends to be (if done right, that is) beneficial for both individual consumers and the companies they purchase goods and services from too, not to mention the overall relaxing of regulations across all different types and sizes of business, so it is hardly any wonder why public companies and their stocks tend to perform quite well when an “R” is in office.
Whether these are ideologies or policies that you personally agree with, history is history and all things considered it remains true in the present, and while the overall market would likely fare well within the context of another four years of Trump (barring extraordinary events such as COVID-19, obviously), here are some of the specific companies and stocks thereof that I think would perform better than most during such a scenario and that if you’re leaning towards objectively believing that Trump will return back to the White House in early November, these are some of the stocks that should already be on your radar.
1. ExxonMobil (NYSE: XOM)
One of the very first sectors of the economy that I believe stands to benefit from another Trump presidency is clearly oil and gas, with his commonly uttered phrase “drill baby, drill” being frequently chanted by him and his avid supporters, and when also considering ExxonMobil’s extensive production presence within the United States, which is only about to get substantially larger given its acquisition of Pioneer Natural Resources (this acquisition naturally enables ExxonMobil to acquire a considerably higher amount of valuable production territory in Texas’ Permian Basin, by the way), and while other oil and gas companies certainly have much to gain from a Trump presidency, I think in more respects than one this famed oil and gas giant has just a little bit more to enjoy. From corporate tax cuts and other prime incentives to more stable consumer gasoline prices stemming from more than likely eased geopolitical tensions, inherently fueling (pun intended) demand, ExxonMobil and other legacy oil and gas firms are in Trump’s favor and have been for some time now.
2. Nucor (NYSE: NUE)
Nucor is a company that is not all too well known in the public eye, however, it is a little-known industry leader within yet another mission critical commodity space; that of steel.
I think Charlotte, North Carolina-based Nucor has a bit more to gain than its peers given the fact that it is already unequivocally the largest steelmaker in the United States of America in terms of production output, and with the vast majority of this manufacturer’s products being put together in the United States, Trump’s pro-American manufacturing policies are surely going to directly benefit a company such as this one, especially since it already has a pointed track record of keeping jobs and work within this nation.
As a sort of basic supplemental reason, one of the company’s largest stateside competitors, United States Steel Corporation (NYSE: X), originally founded by none other than Andrew Carnegie, is currently in the process of being bought out by Japan’s Nippon Steel, which, if such a merger were to successfully close, more than likely would lead to more business to be had for Nucor, especially given Trump’s past statements as they relate to imposing tariffs on countries to the far west of the United States.
3. UnitedHealth Group (NYSE: UNH)
In addition to the previously outlined industrial leaders, I think there is much to also be gained by leaders that are already operating within highly regulated segments of the economy, with healthcare instantly coming to mind. With that in the eggshell, being the world’s largest health insurance company, UnitedHealth Group, gripping nearly 15% of the entire health insurance market in the United States alone, a company and overall industry that is accustomed to copious amounts of regulatory scrutiny can stand to benefit a great deal from more economically motivated, republican-rooted policies. Additionally, on somewhat of a more controversial note, given Trump’s past critiques surrounding Obama’s Affordable Care Act (ACA), if Trump and his administration were to somehow abolish the Act completely, this would undoubtedly lead to many who were previously insured becoming uninsured, and who else could benefit from such an outcome than the world’s biggest and baddest health insurer.
The last thing I will say about UnitedHealth and how it would benefit from another Trump term is through the more than likely uptick in mergers and acquisitions (M&A) this company could engage in, as this is one of the company’s core growth strategies at this point and given the current democrat-headed, anti- large mergers and acquisitions climate, UnitedHealth Group would have a lot less trouble getting strategic deals done under Trump and the rest of his party’s administration.
4. Intel (NASDAQ: INTC)
It wouldn’t exactly feel right if I didn’t mention artificial intelligence at all within this piece, and while many of the larger and more important semiconductor outlets have a stronger presence overseas (in Taiwan, specifically), Intel is a rather sleepy company (and stock for that matter) that is still categorically the largest chip manufacturer within the United States, and while Trump might not have the prettiest nor the most amiable relationship with those in Silicon Valley and other technology hubs in the United States, he will likely never downplay the efficacy nor the potential with artificial intelligence and deep learning, as whatever it is the United States does, he and his counterparts want this country to be number one in it, thus the incentive to continue investing aggressively in important infrastructure projects and manufacturing around the country.
5. Trump Media and Technology Group (NASDAQ: DJT)
In the words of Jay-Z, “pardon me I had to laugh at that.”
No, I am not laughing because I am kidding, but I’m slightly cracking up since the stock market and retail participants particularly have stooped to this low of a level, where regardless of what really matters in a company’s stock, things like elements of its balance sheet, income statement and cash flow statement, future earnings potential, margins and other pertinent metrics and operating ratios, seemingly do not matter for certain stocks caught up in the meme craze, and suffice it to say Trump Media and Technology Group, the parent company of Trump’s conservative social media platform Truth Social, undoubtedly falls into that category.
Heck, the guy’s stock popped after he almost got popped.
Ok, I’ll admit, that was sort of bad taste, but I am still correct in saying that the first day the market reopened following Trump’s assassination attempt, his parent media company’s stock found itself up almost a whopping 40%, and I cannot help to think that upon the scenario of him being reelected that the company’s stock wouldn’t go absolutely bonkers the following day.
Candidly, I am just not a fan of meme stocks at all, primarily since I am of the rationale that investing and results thereof should be dominantly rooted in one’s research and the fundamentals behind a company, and while I am most certainly a proponent of retail traders getting in on the action and generating long-term wealth for themselves and their loved ones, many of which nowadays becoming incredibly wealthy as a result of playing with meme stocks, which just isn’t investing.
Plain and simple.
Conclusion
Ultimately, one of my biggest hopes is that no reader feels as though they can make any presumptions regarding my political views from this article, as my simple and sole intent was to objectively write about the companies that I think would perform exceptionally during an economy in which Donald Trump reentered 1600 Pennsylvania Avenue as the 47th leader of the Free World.
Of course, there are likely many other stocks and companies that would probably perform exceedingly well with a republican leader in office (solely given my aforementioned statements regarding their usual economic policies, among others, as well as their generally accepted views as they relate to capitalism), but upon further thought, these are five that I think inordinately high chances of benefiting from such an outcome.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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