5 US Stocks To Buy Now That Trump Is Back in the White House

After months of speculating which way the US election will swing, investors are now (in light of Trump’s win) pondering which stocks will benefit.

Historically Trump policies have favored deregulation of fossil fuels and infrastructure and defense spending all of which could have a substantial impact on several industries.

But which specific stocks will benefit? We look at five stocks that might rise in value now that Trump has won the US election and we discuss why it’s worthwhile to keep an eye on them.

 

JPMorgan (JPM)

JPMorgan is a multinational banking behemoth. It offers asset management, consumer banking and investment banking services. It is frequently regarded as a predictor of the financial sector through its own investments, the calls of individual analysts at the bank and even public comments of its highest executives.

Our thesis is that Trump’s victory might bring back banking deregulation policies which could make things more hospitable for large banks like JP Morgan. But which specific policies?

Deregulation and Tax Benefits Could be coming its way

Parts of the Dodd-Frank Act which was put into place to further regulate financial institutions following the 2008 financial crisis were repealed by the Obama administration.

We imaging that more regulatory framework relaxation may occur if Trump wins. Deregulation of this kind may lower operating expenses, enhance the flexibility of loan issuance, and boost profit margins for all of JPMorgans services. Furthermore, any decrease in corporate tax rates would immediately increase net earnings, enabling JPM to improve its lending capacity. The new administration wants to cut it to 15% – certainly lower than Australia wouldn’t it be?

It is worth recalling JPMorgan experienced significant profit increases from 2017 to 2020 under the Trump administration. As market confidence in the financial sector rises a Trump victory might promote a similar trajectory.

 

Lockheed Martin (LMT)

Lockheed Martin is one of the leading global defence contractors, with core competencies in aerospace, defense, arms, and advanced technologies. Given Trump’s strong stance on national security and defense funding, Lockheed Martin could benefit from increased government spending in these areas.

We know Trump said in his speech that he wanted to end the wars in Israel and Ukraine. But that doesn’t mean defence spending at home will slow.

Trump has been supportive of increased defense budgets, allocating substantial resources to enhance military readiness and capabilities. During his first term, Lockheed Martin has secured multi-billion-dollar contracts with the Department of Defense (DoD), notably for its F-35 fighter jets and missile defense systems. The election result could result in further budget increases and additional long-term contracts for defense equipment and advanced technologies.

But even if it doesn’t win further contracts, Lockheed’s existing long-term contracts with the DoD provide a strong revenue base, with the company reporting a backlog of over $150 billion.

Key Statistics

• Market Cap: Approximately $120 billion, underscoring its influence within the defense industry.
• Dividend Yield: 2.7%, with a solid record of dividend increases, making it attractive to income investors.
• Backlog (2023): $150 billion, reflecting strong long-term business stability.

 

 

Exxon Mobil (XOM)

One of the biggest oil and gas companies in the world, Exxon Mobil may see a comeback under a Trump administration because of deregulation and pro-energy policies. Trump’s emphasis on fossil fuels and his relaxation of regulations for oil and gas firms fit in nicely with Exxon’s business strategy and could open up new growth opportunities. Granted, it may only be a medium term repreive from the long term decline in oil and gas, but a repreive nonetheless.

Trump repealed several environmental laws during his previous administration, including those that restricted the extraction of gas and oil on federal property. As a result, there were fewer limitations on offshore operations and more rights for drilling. Additional regulatory easing could help Exxon’s exploration and production endeavors, especially in the United States if Trump were to retake office in U.S.-based fields. Exxons capacity to compete internationally would probably be improved by the lifting of regulatory restrictions.

With rising crude oil prices and fewer regulations, Exxons stock rose sharply during Trump’s presidency. Furthermore, Trump’s support for energy independence aided in the expansion of the domestic sector, which had an immediate effect on Exxon’s productivity. This could also flow through to ASX oil stocks too.

Key Statistics

• Annual Revenue: Approximately $400 billion, making Exxon one of the largest energy companies worldwide.
• Dividend Yield: About 4%, appealing to dividend-seeking investors.
• P/E Ratio: 8.5, suggesting value potential amidst favorable policies.

 

Nucor Corporation (NUE)

The Trump administration’s focus on infrastructure development and trade protection may put Nucor Corporation – a major participant in the steel production industry – in a favorable position. During his first term, Trump implemented import steel tariff policies and a focus on domestic steel production. The demand for Nucor products which include structural steel and rebar may rise as a result. A continuation of import steel tariffs would also provide Nucor with a competitive advantage in the U.S. market, protecting against cheaper imports.

These policies had a positive effect on Nucors stock which increased as the domestic steel market became more lucrative. Nucors standing in the steel sector might be strengthened by comparable tariffs if Trump wins.

Key Statistics

• Revenue Growth: Consistent year-over-year growth, with a peak during tariff impositions.
• Production Volume: One of the highest in the U.S., with facilities across multiple states.
• Dividend Yield: Around 1.4%, reflecting stability and profitability.

Outlook

Nucor’s strong position as a domestic steel provider aligns well with Trump’s policy focus on American-made materials and infrastructure spending. The stock could experience further gains if the administration pursues tariffs and domestic manufacturing incentives.

 

GEO Group (GEO)

GEO, a business that specialises in private prison administration and rehabilitation services stands to gain from Trump’s comeback. And its 40% jump in the past week indicates that investors are confident.

Executive orders issued during the Biden administration have limited the use of private prisons for federal contracts. Trump has however previously stated that he would be open to supporting the privatisation of the correctional industry. Given that Trump’s immigration policies placed a strong emphasis on detention facilities for border security this could result in GEO receiving renewed federal contracts. Additionally, GEO may see a large increase in revenue if Trump continues to support privatized incarceration.

Following a difficult time, GEO has concentrated on restoring stability to its financial situation including the recent reinstatement of dividends. This demonstrates optimism about future expansion, especially if new government contracts open up during the Trump presidency.

Key Statistics

• Revenue: Primarily derived from government contracts, especially within federal agencies.
• Market Position: GEO is one of the largest private prison operators in the U.S.
• Dividend: Recently reinstated, signaling a potential income source for shareholders.

 

Conclusion

The impact of Trump’s victory on the stock market would be substantial, particularly for companies poised to benefit from his policy focus. The banking, defense, energy, steel, and corrections industries align closely with Trump’s traditional policy agenda, and companies like JPMorgan, Lockheed Martin, Exxon Mobil, Nucor and GEO could see increased opportunities.

While political outcomes are inherently uncertain, investors should watch these stocks closely as they may present valuable opportunities in a Trump-led administration.

 

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