The Republicans now officially have their own presidential candidate. Former President Donald Trump visited his third choice at the Republican National Convention last week.
There are less than four months left before Americans go to the polls to vote. However, it is not too soon for investors to start thinking about which stocks would do well under different presidential elections.
At least one investor has already started thinking about what the future might look like – namely, me. I predict that these three products will rise if Trump wins in November.
1. Nucor
Trump has proposed a 10% tariff increase on all imported goods. He also talked about imposing tariffs of at least 60% on all goods from China. Although these charges will no doubt be very controversial, I think Nucor (NYSE: NUE ) could be a big beneficiary.
Nucor is a steel manufacturer based in the US. It faces huge competition from Chinese companies, which are ranked as the world’s largest steel producer. Heavy tariffs on Chinese imports could boost Nucor’s sales significantly.
There is also another change. Chinese steelmakers are investing heavily in steel production in other Asian countries to avoid current US tariffs on Chinese imports. A proposed 10% tariff on imports from all countries would reduce the threat to Nucor posed by these efforts.
Nucor is already attractively valued, and shares trade at a price-to-earnings ratio of 12.6. The potential for strong earnings growth in a more secure environment could increase its profits and share price.
2. Halliburton
Chants of “boro, baby, boro” filled the grounds of the Republican National Convention last week. They echoed the sentiments of Trump, who has promised to boost domestic oil and gas production if elected to a second term. That should be music to the ears Halliburton (NYSE: HAL).
The Texas-based company is a leading provider of products and services for the oil and gas industry. The company does everything from exploration to drilling to optimizing the production capacity of oil wells.
By 2023, 46% of Halliburton’s revenue was generated in North America. Although higher fees can hurt a company’s business in some markets, it can have a positive effect overall.
Halliburton’s stock has not been a big winner over the past 12 months. But I suspect it may be during another Trump administration, especially with shares now trading at 11 times the original.
3. UnitedHealth Group
Look for a more laissez-faire approach to health care with Trump than there would be with a Democrat in the White House. Medicare Advantage policies may not be too strict. No doubt such an environment would help UnitedHealth Group (NYSE: UNH).
The UnitedHealthcare company division is the largest provider of Medicare Advantage plans as well as the largest health insurer in the US. market share.
Fewer regulatory requirements for Medicare Advantage plans could help UnitedHealth Group offer more products that appeal to retirees. Critics of the RBC Capital assume that the Justice Department in Trump’s second term would relax its review of UnitedHealth Group’s merger between managed care and Optum’s health services businesses.
UnitedHealth Group stock has hit record highs. But it’s up less than 10% year to date. I expect a possible Trump victory in November to provide a decisive boost.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a publicity strategy.
Prediction: These 3 stocks will rise if Trump wins in November published by The Motley Fool.
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