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    Stocks Expected To Jump If Trump Secures The U.S. Presidency

    Image Source: Ground Picture / Shutterstock

    As the campaign for the 2024 U.S. presidential election heats up following the initial debate between Donald Trump and Joe Biden, the discourse has shifted. The possible impact of the election’s outcome on the financial markets is capturing the keen interest of investors.

    Experts at leading financial institutions like UBS have begun highlighting certain stocks predicted to flourish should Trump secure victory and the Republicans take over Congress.

    UBS projects that a renewed Trump presidency may pave the way for relaxed regulations and taxes, bolstered domestic energy development, and a more assertive trade policy, potentially giving these firms a lift.

    Cheniere Energy (NYSE: LNG)

    Cheniere Energy (NYSE: LNG), the foremost exporter of liquefied natural gas in the U.S., stands to benefit markedly from a Trump triumph in the 2024 presidential contest.

    Trump has committed to diminishing red tape and fast-tracking approvals for LNG exports, which could spell significant advantages for Cheniere. These assurances form part of a larger bargain Trump offered to the oil and gas sector in return for a substantial $1 billion in election campaign contributions.

    Amidst fluctuations, LNG shares have managed a modest rise of 0.5% within the current year, with an increase of nearly 14% over the trailing twelve months.

    Cheniere is likely to appeal to those seeking dividend income. The enterprise has consistently enhanced its quarterly dividend to $0.435 per share, with a current yield of 1.02%, indicative of robust profit potential.

    Concerning the basics, Cheniere’s most recent financial statements have been a mixed bag. Although first-quarter earnings failed to meet projections at $2.13 per share, revenue of $4.25 billion surpassed estimates by 6.93%.

    For the second quarter of 2024, forecasters are estimating earnings of $1.74 per share on revenues of $3.72 billion, with the yearly forecast at $8.33 EPS based on revenues of $15.96 billion.

    General Motors (NYSE: GM)

    General Motors (NYSE: GM), a titan in the auto industry worldwide, is known for designing and marketing a diverse array of vehicles and components under several prestigious brands such as Buick, Cadillac, Chevrolet, and GMC.

    Analysts from UBS predict that GM might experience significant gains with a Trump victory in 2024, encouraged by his “America First” mandates, including protective tariffs aimed at strengthening U.S.-based manufacturers.

    GM’s shares have shown impressive growth, appreciating 19.25% over the last year and a remarkable 28.88% surge in 2024 so far.

    The firm disburses a quarterly dividend standing at $0.12 per share, translating to an annual yield of 1.05%.

    In an effort to counter dwindling sales of electric vehicles (EVs), GM has entered into a strategic partnership with Costco (NASDAQ: COST) to harness its Auto Program, expanding its outreach to a broader clientele.

    GM unveiled commendable results for the first quarter of 2024, with a revenue milestone of $43.0 billion (up 7.6% year-on-year) and net earnings of $2.98 billion (a surge of 24.4%).

    The automaker’s adjusted EPS of $2.62 surpassed expectations, and with a healthy cash flow, GM has increased its projection for the full year, expecting net profits ranging from $10.1 billion to $11.5 billion.

    Nucor Corporation (NYSE: NUE)

    Nucor Corporation (NYSE: NUE), a leader in the American steel sector, is lauded for its pioneering and environmentally friendly practices.

    With operations spanning Steel Mills, Steel Products, and Raw Materials segments, UBS foresees a conducive atmosphere for Nucor resulting from Trump’s emphasis on aggressive tariffs for the safeguarding of domestic industries.

    Nucor stands out for its shareholder returns. Its $0.54 per share quarterly dividend ($2.16 annually) equates to a yield of 1.40%. The firm has demonstrated commendable longevity in raising dividends, marking 50 consecutive years, earning it the title of “Dividend King.”

    In contrast, NUE’s stock has seen less encouraging performance lately, declining 4.55% over the past year and 9.89% since the turn of the year.

    For the first quarter of 2024, Nucor delivered a mixed financial picture. The company reported a quarterly net sales advancement of 6% to $8.14 billion, outperforming expectations, yet its $3.46 earnings per share fell below the forecasted $3.62.

    With steel mill operations efficaciously running at 82% capacity, up from the preceding quarter’s 74%, the firm’s productivity seems resilient in the face of market trials.

    Expectations for Nucor in Q2 2024 rest at $2.30 per share in earnings with approximately $7.7 billion in revenue. The entire year’s preview anticipates earnings of $10.78 per share and a grand revenue total of around $31.1 billion.

    Considering Trump’s “Make America Great Again” mantra and rising tariffs, it’s suggested that U.S.-based producers and their stock prices could potentially reap benefits from his return to the Oval Office.

    Image Source: Ground Picture / Shutterstock

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