Election Season Stocks: What to Watch as the U.S. Presidential Race Heats Up
The U.S. Presidential election is approaching its final stages, and it looks like it could be another close race. If you believe that Trump’s Make America Great Again campaign might lead him back to the White House for a second term, consider the following stocks that may benefit from upcoming market shifts.
On the other hand, if you think Kamala Harris has an advantage, check out our insights on Harris Stocks: Promising Picks If Harris Wins. Meanwhile, for those who feel the outcome is uncertain, it’s worth examining How Election-Proof Is Your Portfolio?
The following stocks are likely to see the most significant gains if Trump wins:
- Trump Media & Technology Group (NASDAQ:DJT)
Investing in DJT seems logical, as Trump is the majority shareholder of the company that runs the social media platform Truth Social. The stock has faced considerable volatility over the past year, fluctuating between a low of $11.75 and a high of $79.38. Although DJT has gained 75% this year, it dropped more than 30% last week. If Trump secures a victory, significant gains are expected, but be cautious of continued price swings until the results are finalized.
- Rumble (NASDAQ:RUM) and Phunware (NASDAQ:PHUN)
These two companies are also closely tied to Trump and should benefit if he wins. Rumble is an online video platform and cloud services firm that supports Truth Social, while Phunware is a mobile software company that developed campaign data and a reelection app for Trump in the past. While both stocks have shown volatility, RUM has demonstrated more stability in the past six months, making it a more appealing option.
Elon Musk, a well-known supporter of Trump, may see benefits for his companies if Trump wins. Our previous analysis highlighted the connection between Trump and Tesla in pieces like Musk’s Trump Card: Will Tesla Be Boosted Or Totaled? and Can Trump Take Tesla Stock To $0? The potential for TSLA stock to rise significantly under a Trump administration is strong. This is particularly true given Trump’s calls for increased tariffs on Chinese imports, which could enhance Tesla’s sales in the U.S.
- Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL)
Both Schlumberger and Halliburton, leading oil service companies, have struggled this year, losing about 25% of their value. However, a Trump victory could dramatically change their fortunes. Trump’s support for oil and gas suggests favorable policies for conventional energy, which were sidelined during the Biden administration. Notably, SLB and HAL are less volatile compared to diversified energy stocks like Exxon Mobil and Chevron, making them attractive investment choices.
- Bank of America (NYSE:BAC) and Citigroup (NYSE:C)
Trump’s proposals, particularly regarding corporate tax cuts, may positively impact U.S. businesses. The tax cuts he initiated in 2017 boosted business sentiment and benefited banks. If he wins again, we anticipate a similar effect on banks, especially those like BAC and C, which are well-positioned in various banking services and are some of the most undervalued stocks in the diversified banking sector.
What if Your Investment Horizon is Longer?
These stocks present promising short-term investment opportunities should Trump win the upcoming election. However, the results could vary, and the longer-term trends will ultimately shape your portfolio. Consider building your investments with stocks that provide stability and value over time. The Trefis High Quality (HQ) Portfolio, consisting of 30 carefully selected stocks, has outperformed the S&P 500 each year from 2021 to 2023, demonstrating lower risk with better returns than the benchmark index.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
