These stocks are not afraid of the uncertainty of the 2024 US elections and are poised to beat the S&P 500 in the coming months, regardless of who takes over the White House.
Whatever the outcome of the US presidential election in November 2024, there are 3 stocks expected to rise regardless of who wins between Biden and Trump. Historically, elections have not had a lasting impact on markets, with large companies in the S&P 500 continuing to prosper in the 12 months following the midterm votes.
However, 2024 brings with it significant uncertainty for investors, with candidates’ contrasting views on the future of the economy. A Trump victory could favor traditional energies and deregulation, to the benefit of companies like ExxonMobil and Chevron. Conversely, a Biden victory could boost renewable energy, with companies like NextEra Energy and Tesla at the top of the list. Despite this, some sectors and stocks demonstrate resilience and growth potential under both scenarios.
- Implicit volatility of VIX futures
- Source: Reuters
Let’s find out together which 3 stocks are ready to lead the market, regardless of the election result. Market volatility, reflected by the VIX Fear Index, is already anticipating swings ahead of the November 2024 election, with futures tied to the Cboe Volatility Index VIX reflecting increased demand for protection against stock swings ahead of the November vote. Experts warn that the market may still face increased political uncertainty during this period.
1. JPMorgan Chase (JPM)
- JPM weekly graph
- Source: Tradingview
The financial sector is one of the key pillars of the economy and tends to benefit from policies that promote economic growth, regardless of the party in power. JPMorgan Chase, a major American bank, is well positioned to benefit from a sustained economic growth environment. Administrations, both Republican and Democratic, have historically taken measures to stimulate the economy, which favors institutions like JPMorgan Chase. With its broad range of financial services, including investing, wealth management, and consumer banking, JPMorgan can quickly adapt to changing market conditions and regulations.
Under a Trump presidency, the emphasis on deregulation could encourage a more aggressive expansion of banking operations. At the same time, under a Biden presidency, the bank could benefit from economic stimulus programs and infrastructure investments.
- JPM target price
- Source: TipRanks
JPMorgan reported strong business momentum in 2023, with net revenue growing 22.8% to $158 billion and an EPS increase of 34.2%, driven by its consumer banking and community banking segments. In the first quarter of 2024, growth in profits and loans continued, while the increase in deposits was 2%. Despite adding $1.9 billion in credit losses, lower than the previous year, the uncertain macroeconomic environment persists, although the Federal Reserve could improve the operating environment by reducing interest rates.
2. Apple (AAPL)
- Apple weekly graph
- Source: Tradingview
The technology sector is one of the most dynamic and innovative, and companies like Apple are well-positioned to benefit from policies that foster innovation and economic competitiveness. Regardless of the election outcome, Apple continues to be a leader in technological innovation, with strong demand for its products and services around the world.
Under a Trump presidency, Apple could benefit from favorable tax policies and incentives for domestic production. On the other hand, under a Biden presidency, the focus on sustainability and renewable energy could push Apple to further strengthen its social and environmental responsibility initiatives, improving its reputation and attractiveness to investors.
- Apple target price
- Source: TipRanks
Recently, investment firm Rosenblatt upgraded Apple (AAPL) to a “Buy” rating with a target price of $260 per share, with a potential upside of 20%.
3. Lockheed Martin (LMT)
- Lockheed Martin weekly graph
- Source: Tradingview
The defense and aerospace is another sector that benefits from spending supported by both administrations. Lockheed Martin, a major defense contractor, is strategically positioned to take advantage of both Trump and Biden’s continued commitment to national security. Historically, defense spending has been a bipartisan priority, with both parties recognizing the importance of maintaining and improving the country’s defense capabilities. Lockheed Martin, with its long-term government contracts and industry leadership position, is capable of maintaining stable growth regardless of the election outcome. Long-term projects such as the F-35, missile defense systems, and space technologies ensure a steady stream of revenue for the company.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|
Original article published on Money.it Italy 2024-06-28 15:51:00. Original title: 3 azioni che saliranno sia con la vittoria di Biden che di Trump alle Elezioni USA 2024
