Stocks to watch if Donald Trump wins the US election
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With the US election entering its final lap, the contest between Trump and Harris remains extremely close. The nation is preparing to vote on 5 November and a potential Trump victory could lead to significant market shifts, particularly in sectors aligned with his policies.
His "America First" agenda is likely to bolster traditional industries such as construction, infrastructure, and energy.
Here are the stocks that could stand to gain if Trump is elected as the next US president.
Defence stocks
Trump is expected to strengthen US defence capabilities, potentially benefiting companies in this space. The VanEck Defense ETF (DFEN.MU), which holds a majority of its assets in US defence contractors, could see increased interest.
“Its portfolio includes American government and military contractor Booz Allen Hamilton (BAH) which is an intelligence specialist; Palantir Technologies (PLTR) which helps the US army with data insights; and Leidos (LDOS) which supports homeland security and is active in weapons systems research and development,” Dan Coatsworth, investment analyst at AJ Bell, said.
Read more: Stocks to watch if Kamala Harris wins the US election
Stocks such as Lockheed Martin (LMT) and Northrop Grumman (NOC) could benefit from increased defence spending.
Oil and gas
A Trump 2.0 administration could favour domestic fossil fuel producers as he aims to enhance America's energy security.
“A Trump election victory could also create a tailwind for domestic fossil fuel producers in an effort to fortify America’s energy security. Approximately two thirds of exchange-traded fund iShares Oil & Gas Exploration & Production (IOGP.AS) is held in US-listed assets, including a stake in EOG Resources (EOG) which is one of America’s key oil and gas players, Coatsworth said.
Trump is also likely to prioritise increased domestic oil and gas production, positively impacting stocks like Exxon Mobil (XOM) and Chevron (CVX).
“A Trump win could bring Exxon Mobil regulatory relief, including relaxed environmental restrictions and lower corporate taxes, both of which could enhance profitability and support increased domestic production, Kathleen Brooks, founder of Minerva Analysis, said.
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“Exxon’s financial strength is a key differentiator. With a strong balance sheet and substantial free cash flow, it has the firepower to maintain its dividend payments and continue its stock buyback programs. Though nothing is guaranteed,” she added.