Potential Stock Picks Amid Election Uncertainty: Betting on Harris
The Trump vs. Harris showdown is nearing its conclusion, but the outcome is still uncertain. If you believe Harris deserves a promotion from Vice President to President, here are some stocks to consider for potential market gains. Conversely, if you think Trump has the lead, check out Trump Stocks: Promising Picks If Trump Wins. For those who see it as too close to call, now could be a good time to evaluate How Election-Proof Is Your Portfolio?
Should Harris win, these stocks are likely to benefit the most:
Harris and Trump hold significantly different views on energy policy. Trump favors traditional oil and gas companies, while Harris advocates for renewable energy. As the largest solar power company in the U.S., First Solar is positioned to gain if Harris is in office. The stock has already seen impressive growth this year, increasing nearly 25% since January, and this trend may accelerate under a Harris-led administration.
- D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN), and Century Communities (NYSE:CCS)
Among Harris’s key campaign promises is her goal to “build 3 million housing units in four years.” If she succeeds, major homebuilders will be involved. D.R. Horton and Lennar, the two largest homebuilders in the U.S., stand to benefit significantly. While not as large, Century Communities could also be a strong pick due to its status as a potentially undervalued stock with both immediate and long-term growth prospects.
- UnitedHealth (NYSE:UNH) and Centene (NYSE:CNC)
Harris has promised to expand healthcare coverage, echoing initiatives from previous administrations under Obama and Biden. This focus is favorable for managed healthcare companies. UnitedHealth, which holds a leading share in the U.S. managed health care sector, could thrive if Harris is elected. Additionally, Centene appears to be an attractive choice as it is viewed as one of the most undervalued stocks in the managed healthcare market.
- Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD)
This year, the semiconductor industry has gained much attention, particularly Nvidia, which has experienced significant growth due to rising demand for AI chip technologies. A Harris administration is expected to direct more investments into infrastructure and incentives to bolster U.S. semiconductor manufacturing. While Nvidia will also benefit, companies like Intel and AMD could see a revival. Both have struggled this year, with Intel suffering over a 50% decline in stock value and AMD hovering around its initial level from January. However, their prospects might improve under Harris’s presidency.
For those with a longer investment outlook:
The stocks outlined above represent strong near-term options if Harris secures the presidency. However, the election isn’t the only factor in play. After the election, trends across various industries may take precedence. For sustained value in your portfolio, focus on stocks that minimize risk and volatility. The Trefis High Quality (HQ) Portfolio, which features 30 stocks, has outperformed the S&P 500 every year from 2021 to 2023. This portfolio has consistently delivered better returns with reduced risk compared to the benchmark index, providing a smoother investment experience.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
