As we navigate the unpredictability of political cycles, one might assume that selecting stocks for the presidential election would be akin to threading a needle in total darkness. Surprisingly, however, the task of finding suitable candidates for your portfolio amidst the heated political rhetoric is not without its silver linings. Despite the stark contrasts dominating the current political landscape, it appears that both the Democratic and Republican fronts share more similarities than meet the eye.
The attention may currently be fixated on the glaring disparities between the two ideological poles. However, beneath the surface, the common chorus seems to reverberate with a resounding ‘America this, America that, we’re going here and there’. The core essence of the message might be molded differently, but the beneficiaries of these directives often overlap.
A striking illustration of this unity can be found in the slogans of the two primary candidates: President Joe Biden’s ‘Build Back Better’ and former President Donald Trump’s ‘Make America Great Again.’ Despite the apparent divergence in their tonality, both directives revolve around the overarching theme of construction, a narrative that could very well catalyze a boon for manufacturing-related businesses.
With that harmonious note in mind, here are some compelling stock picks to consider as we approach the highly-anticipated presidential election.
Vulcan Materials (VMC): A Steady Bet for Economic Growth
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When considering stocks that could thrive amidst the fervor of the upcoming presidential election, Vulcan Materials (NYSE:VMC) emerges as a glaringly formidable contender. Operating as a producer and supplier of construction aggregates within the U.S., Vulcan stands as a beacon of stability amid economic uncertainties. Through its diversified segments such as Aggregates, Asphalt, Concrete, and Calcium, Vulcan continues to fortify its position in the market.
Forget the political dichotomy for a moment. Both Biden and Trump’s agendas, in essence, revolve around the constructive transformation of America. Regardless of the ideological nuances at play, the fundamental objective of erecting a more robust national infrastructure is bound to bode well for manufacturing-driven enterprises.
Forecasters predict that for the current fiscal period, Vulcan will attain earnings per share of $8.55 on revenue totaling $7.87 billion. Additionally, the high-end estimate of $9.09 for EPS and $8.44 billion for sales offers a tantalizing glimpse of future prospects – prospects that bear immense relevance in the political milieu.
Industry analysts have bestowed VMC with a unanimous strong buy rating, featuring a price target of $271.62. Moreover, the loftiest projections extend up to an impressive $300, signaling a promising outlook for potential investors.
Deere (DE): Sowing Seeds of Prosperity in the Agricultural Sector
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Within the realm of agricultural machinery, Deere (NYSE:DE) emerges as a beacon of hope amidst the tumultuous political climate. In a society where the youth show diminishing interest in agriculture, both Biden and Trump realize the indispensable nature of supporting the agrarian landscape. Thus, DE stock stands to gain from the unwavering commitment to this sector, irrespective of political affiliations.
Contrary to underlying assumptions, agriculture is not a sector one can afford to overlook in the political discourse. Against the backdrop of disrupted global resource supply chains – first by the scourge of Covid-19, and later by geopolitical tensions – a resilient agricultural sector stands at the forefront of economic resurgence. Therefore, Deere undoubtedly secures its standing as a prominent stock choice for the upcoming presidential election.
Analysts predict that by the end of the current fiscal year, Deere will achieve an EPS of $27.29, accompanied by revenues totaling $47.83 billion. Although these figures signify a dip from last year’s performance, which boasted an EPS of $34.69 and revenue of $55.56 billion, there remains a strong likelihood of Deere surpassing these projections. Notably, in fiscal 2023, the average positive earnings surprise amounted to an impressive 16.93%.
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The realm of defense contracting presents a unique but contentious avenue for investors eyeing stock picks ahead of the impending presidential election. In a peculiar turn of events, Democrats and Republicans find themselves in a role reversal of sorts. Whereas during the Reagan era, Republicans staunchly opposed Soviet Russia, the contemporary political landscape hints at a more aligned stance from Democratic quarters.
Stocks Shaping the Political Scene
Turning our attention to the companies driving the political landscape, we find entities whose fortunes are intertwined with the ebb and flow of the election season. Among them is Kratos Defense & Security Solutions, an innovative force in the realm of defense and national security. Specializing in unmanned aircraft systems, Kratos has garnered attention for its cutting-edge contributions to modern warfare. Notably, the current fiscal year sales projection of $1.14 billion suggests a trajectory of growth. In the ever-evolving military landscape, the significance of fostering innovation cannot be overstated.
Exxon Mobil (XOM)
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Exxon Mobil, a titan in the realm of hydrocarbons, explores and produces crude oil and natural gas across the globe. Against the backdrop of a dynamic geopolitical climate, Exxon’s upstream segment holds promise for investors seeking to navigate turbulent waters. Despite initial setbacks at the beginning of the year, XOM has surged ahead, displaying resilience in the face of market fluctuations. Analysts project an EPS of $8.85 for the fiscal year 2024, indicating potential for growth despite varying earnings performances.
Tilray (TLRY)
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Tilray, a prominent player in the botanical sector, is involved in the research, cultivation, and distribution of medical cannabis products on a global scale. While facing challenges, the recent bullish trend in cannabis stocks has injected renewed optimism in TLRY’s outlook. With a Biden administration signaling a stronger stance on marijuana legalization, cannabis-related securities like Tilray are gaining traction. The prospect of federal legalization further enhances the position of TLRY in the market.
Sturm Ruger (RGR)
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Sturm Ruger, a renowned firearms manufacturer, stands at a crossroads where political currents converge. While traditionally finding favor with a particular political leaning, RGR could present a compelling opportunity in the post-election landscape. Should prevailing sentiments around gun control ease under a second Trump term, the urgency to stockpile firearms might diminish. The interplay between political narratives and market dynamics shapes the trajectory of Sturm Ruger’s performance.
Investing Amidst Political Winds: RGR and CXW Stocks for the Presidential Election
Analyze: Sturm Ruger (RGR)
As the political landscape churns in anticipation of the presidential election, investors are eyeing the firearm industry with a mix of trepidation and avarice. One particular company, Sturm Ruger (RGR), finds itself at the junction of politics and profit. If Joe Biden secures victory, and especially if Democrats sweep alongside him, RGR’s stock trajectory may ride a wave of liberal gun control fervor. In a cynical twist, RGR might even be rooting for a Biden win, given its recent 17% negative earnings surprise for fiscal 2023. Desperation breeds strange bedfellows, and for RGR, panic-induced demand might just be the elixir it needs.
Lake Street’s Mark Smith shines a bullish light on RGR, deeming it a “buy” with a tantalizing $54 price target. Should a Biden administration come to power, the stock could soar even higher. So, for those attempting to align their portfolios with potential political shifts, RGR stands out as one of the stocks to watch in this electoral drama.
Exploring: CoreCivic (CXW)
Nestled under the broad industrial umbrella lies CoreCivic (CXW), a private prison operator. While the company may adorn itself with euphemisms like “correctional, detention, and residential reentry facilities,” the age-old adage holds true – if it looks like a duck and quacks like a duck, it’s likely a duck. In the mire of stocks ripe for political sensitivity, CXW emerges as a controversial figure.
Let’s not mince words – the privatization of detention centers such as those managed by CoreCivic raises eyebrows and moral quandaries. When profit intertwines with punishment, there emerges a cynical incentive structure fraught with potential pitfalls for both inmates and security personnel. The narrative becomes all the more complex in the event of a Republican victory, where concerns over undocumented immigration may reign supreme, potentially bolstering demand for CXW stock.
Analysts appear unanimous in their appraisal of CXW, slapping a strong buy rating on the stock, coupled with an enticing $17.33 average price target. It’s a curious juxtaposition – mired in controversy yet deemed a golden child by market watchers. As the election frenzy mounts, only time will unravel the twists and turns awaiting RGR and CXW investors.
