As the 2024 U.S. presidential election approaches, the narrative is shifting after the first debate between Joe Biden and Donald Trump. Investors are particularly interested in how the election outcome could affect financial markets.
Analysts at central investment banks, such as UBS, are already identifying stocks that might benefit if Trump wins and Republicans gain control of Congress.
UBS suggests that a second Trump administration could lead to lower regulations and taxes, increased domestic energy production, and a tougher trade stance, potentially boosting these companies.
Picks for you
Cheniere Energy (NYSE: LNG)
Cheniere Energy (NYSE: LNG), the largest U.S. exporter of liquefied natural gas, will potentially gain significantly if Donald Trump wins the 2024 presidential election.
Trump has pledged to roll back regulations and expedite approvals for LNG exports, which could greatly benefit Cheniere. This support is part of a broader deal Trump proposed to the oil and gas industry in exchange for $1 billion in campaign funding.
Despite recent volatility, LNG shares have risen just 0.5% this year, but are up almost 14% over the past year.
Dividend investors might find Cheniere attractive. The company has been steadily increasing its quarterly dividend, currently at $0.435 per share and yielding 1.02%, which often signals strong earnings.
As for the fundamentals, Cheniere’s latest earnings were mixed. Q1 earnings of $2.13 per share missed estimates, but revenues of $4.25 billion exceeded expectations by 6.93%.
For Q2 2024, analysts predict $1.74 per share earnings on revenues of $3.72 billion, with full-year estimates at $8.33 EPS on revenues of $15.96 billion.
General Motors (NYSE: GM)
General Motors (NYSE: GM) is a global leader in the automotive industry. It designs and sells various vehicles and parts, marketing its products under brands like Buick, Cadillac, Chevrolet, and GMC.
UBS analysts suggest that GM could benefit significantly if Donald Trump wins the 2024 presidential election and implements “America First” policies, including tariffs to boost U.S. manufacturers.
GM’s stock has been performing well, rising 19.25% over the past year and nearly 28.88% in 2024 alone.
The company pays a quarterly dividend of $0.12 per share, yielding 1.05% annually.
To counter slowing electric vehicle (EV) sales, GM has partnered with Costco (NASDAQ: COST) to utilize its Auto Program, broadening its reach to more customers.
In the first quarter of 2024, GM reported impressive financial results, with revenues reaching $43.0 billion (a 7.6% increase year-over-year) and a net income of $2.98 billion (a 24.4% increase).
The company’s adjusted earnings per share of $2.62 exceeded expectations, and its cash flow remains strong. GM has raised its full-year guidance, anticipating net income between $10.1 billion and $11.5 billion.
Nucor Corporation (NYSE: NUE)
Nucor Corporation (NYSE: NUE) is a significant player in the U.S. steel industry and is known for its innovation and sustainability efforts.
The company operates through three segments: Steel Mills, Steel Products, and Raw Materials. UBS believes that Trump’s policies, mainly his focus on steep tariffs to protect domestic manufacturing, could create a favorable environment for Nucor.
Nucor has a strong track record of rewarding its shareholders. It pays a quarterly dividend of $0.54 per share ($2.16 annually), resulting in a 1.40% yield. Nucor has increased its dividends for 50 consecutive years, earning it “Dividend King” status.
However, NUE’s stock performance has been less impressive recently, down 4.55% over the past 52 weeks and 9.89% year-to-date.
In Q1 2024, Nucor reported mixed results. Net sales increased by 6% from the previous quarter to $8.14 billion, beating estimates, but earnings per share of $3.46 fell short of the expected $3.62.
The company’s steel mills operated at 82% capacity, up from 74% in Q4 2023, indicating efficient operations despite market challenges.
Analysts expect Nucor to earn $2.30 per share in Q2 2024, with around $7.7 billion in revenue. Predictions for the full fiscal year are $10.78 in earnings per share and total revenue of approximately $31.1 billion.
Thanks to the increasing tariffs and Trump’s stance “Make America Great Again,” domestic producers and their stocks might stand to profit from the former president returning to office.
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