The Impact on Law and Order: Axon Enterprise (AXON)

Axon Enterprise (NASDAQ:AXON) is a company developing technology and weapons products for military, law enforcement, and civilian use. Indeed, I think this is among the best-positioned companies to benefit from Trump’s policies, should he triumph in 2024.

Trump has repeatedly vowed to crack down on crime, secure the southern border, and support domestic police departments. He is also likely to increase military spending substantially. This all bodes very well with respect to demand growth for Axon’s suite of body cameras, digital evidence management platforms, and non-lethal weapons.

Recently, Axon made a savvy move to acquire Fusus, providing real-time operations software to grow the company’s total addressable market by $20 billion. The new Axon Body Workforce product line also cleverly expands Axon’s reach into commercial sectors like retail and healthcare. Under a second Trump term, I would expect significant tailwinds for both Axon’s public sector and private sector business segments.

The company is already executing tremendously well. Axon’s Q3 sales grew 33% and its profitability is stellar. Thus, I believe AXON stock deserves the premium it trades at, given its prospective growth prospects.

The Energy Sector Rally: Baker Hughes (BKR)

Baker Hughes (NASDAQ:BKR) is poised to benefit immensely from a Trump-led ‘America First’ agenda in the Oval Office.

Trump has repeatedly promised to unleash America’s “drill, baby, drill” energy production potential. He is likely to reduce regulations substantially for domestic oil and gas producers, while expediting LNG export projects globally. This should translate into a surge of new business for Baker Hughes.

While BKR stock has struggled amid concerns over a growth slowdown, a second Trump term could profoundly change the company’s trajectory. In the company’s core Oil Field Services and Equipment segment, Baker Hughes still managed to grow 2023 revenues by 16%, while growing its operating margins by an impressive 80 basis points.

Thus, Baker Hughes’ outlook remains cautiously optimistic. Under a Trump administration (likely unwilling to beg OPEC for more oil abroad but rather maximize our domestic production), Baker Hughes is sure to see accelerating order growth both onshore and offshore. Its LNG capabilities will also be in high demand. trading at a reasonable forward price-earnings ratio of 14-times, Baker Hughes seems like a value stock ready to erupt. If Trump brings a driller’s mentality back to the White House, few companies offer more upside than Baker Hughes right now.

The Financial Sector Jewel: JPMorgan Chase (JPM)

As one of the largest and most influential global banks, JPMorgan Chase (NYSE:JPM) should perform well no matter who occupies the Oval Office. But a Trump triumph in 2024 could provide particularly positive catalysts for the mega bank.

Financial Insights: Trump’s Influence on JPMorgan, Rumble, Borr Drilling, and Seadrill

Rumble (RUM)

A right-leaning video platform competing with the likes of YouTube, Rumble (NASDAQ:RUM) has seen tremendous growth since Trump joined the platform after post-bans from other mainstream social media sites. The company’s stock price reflects enthusiasm around another Trump presidential term, surging 75% year-to-date.

If Trump wins again, Rumble should continue benefiting from expanded brand awareness and user growth as it becomes the go-to video site for conservative voices. Trump would also likely pursue policies aimed at limiting the power of other big tech companies, creating an opening for Rumble to gain market share. While profitability remains elusive for now, Rumble’s revenue growth rate has remained at triple-digit levels, as user engagement booms.

With $267 million in cash and almost no debt, Rumble has years of runway to grow into its valuation. I’ll admit the company’s current valuation gives me a little vertigo. But in a scenario where Trump returns and his supporters flock to Rumble en masse heading into the 2024 election, speculative upside still exists here. This could become the platform of choice for an entire political movement.

Borr Drilling (BORR)

As an offshore driller operating specialized modern jack-up rigs, Borr Drilling (NYSE:BORR) would find smooth sailing under a second Trump term. With Trump promising to unleash domestic oil production, roll back regulations, and rehabilitate the wider fossil fuel industry, offshore drilling companies like Borr should have ample growth opportunities.

The company’s utilization rates already stand at 94% with full order books, as offshore drilling capacity remains scarce. Additionally, Borr has locked in future contracts at highly-favorable day rates as well, with upward rate momentum seeming likely to persist. Even if rates plateau, Borr is set to generate over $500 million of 2024 EBITDA, allowing for rapid de-leveraging and a continuation of capital return to shareholders. Notably, Borr also secured $82 million for three additional jack-up rigs, signaling more growth could be on the horizon.

That said, BORR stock trades at just 8-times 2024 estimated earnings, while analysts forecast ~30% revenue growth ahead. That’s too cheap for a quality name like this.

Seadrill (SDRL)

Opportunities & Optimism in Trump Era: Investment Outlook