Where former president Donald Trump looked to have a commanding lead against in the November election, President Joe Biden dropping made the race competitive. Kamala Harris as the Democrat nominee now has the polls tilting one way or the other.
Still, after her convention bounce fades, Trump could establish a lead once more that carries him to the White House. A Republican victory would allow for setting new economic priorities that would mark a different course for the country.
While the probability of a red wave washing over Washington has diminished, a change in control of the government, coupled with a conservative Supreme Court majority, would elevate certain industries to the forefront.
The following three stocks have the best chance of seeing their prospects improve and their stocks soar under President Trump.
Key Points About This Article:
- The race for president has become much closer but a Republican tsunami is still possible.
- With Donald Trump back in the White House, there are clear stock favorites under a Republican administration.
- If you want to pick up some of the stocks with the greatest potential no matter who wins, check out our brand-new “The Next NVIDIA” report that lays out the next megatrends in AI and the companies we’re confident can dominate them.
Lockheed-Martin (LMT)
One of the cornerstones of Trump’s campaign is to rebuild the American military. As the largest defense contractor, Lockheed-Martin (NYSE:LMT) could benefit most from renewed defense spending.
Sales to foreign governments would likely diminish as Trump halted sales of additional war materiel to Ukraine and adopted a more America first defense posture. While fully 26% of Lockheed’s revenue in 2023 came from sales to foreign governments, that number would not drop to zero. And any reduction would undoubtedly be offset by higher domestic spending.
After largely trading sideways for a year, LMT stock jumped after reporting second-quarter earnings. The government also began accepting deliveries again of Lockheed’s important F-35 fighter jet following a year-long delay. With aeronautics accounting for 40% of revenue, this is a big boost to its operations. Look for missiles and fire control, which offers Lockheed its best profit margins, to continue its growth trajectory.
A Trump presidency would further bolster Lockheed-Martin’s bottom line.
Exxon Mobil (XOM)
Similarly, expect integrated oil and gas giant Exxon Mobil (NYSE:XOM) to gain from a second Trump term. As it hones in on its domestic assets, especially within the Permian Basin, the oil stock would seize the opportunity offered by Trump’s plan to “unleash the production of domestic energy resources.”
Exxon became the largest producer in the Permian when it completed the acquisition of Pioneer Natural Resources earlier this year. The merger added Pioneer’s 850,000 net acreage with its own 570,000 net acres. It helped Exxon deliver some of its best profits ever, or $9.2 billion in earnings. Combined, Exxon is now a regional powerhouse looking to increase oil and gas production by 50% by 2027.
Oil-rich Guyana also achieved record production for Exxon, with total upstream net production increasing by 574,000 oil-equivalent barrels per day in the second quarter. It earned $12.7 billion from its upstream operations over the first six months of 2024. Expect those profits to expand further in a Republican administration.
Axon Enterprise (AXON)
Law and order is also key to Trump’s platform. Axon Enterprise (NASDAQ:AXON), as a critical supplier of less-than-lethal weapons and body cameras to law enforcement, would be a primary beneficiary of a Trump win.
Business is already booming. Second-quarter Taser sales jumped 28% year-over-year to more than $196 million while body camera sales were also up 28%. Due to demands by both the public and the police for greater accountability and protection, demand for Axon’s full suite of products is surging. Overall revenue rocketed 35% higher from the year-ago period allowing Axon to raise its full-year guidance.
The third leg of Axon’s triad is its evidence database management system. Connected through the cloud to both the Taser and its cameras and sensors, Axon Evidence makes the total package very sticky to its end customers. Axon serves 20,000 agencies in all 50 states and throughout 90 countries around the world.
Likely a business that would excel no matter who is president, Axon Enterprise looks especially ready to profit if a tough-on-crime candidate wins.
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