These Stocks Are Primed For A Breakout Once Donald Trump Takes Office In January
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The election of a new president always signals an imminent change in many aspects of American life. That's because every President has policy priorities, especially concerning the economy. Based on his comments during the campaign, it's clear that the Trump presidency will be very pro-business, which means there will be some big winners on Wall Street. Read to discover why these stocks could boom during Trump's second term.
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Chevron- (NYSE:CVX)
Donald Trump has made no bones about his commitment to expanding America's fossil fuel production. The chant of "Drill, baby, drill" can be heard often at his rallies and it will likely be a central tenet of his domestic policy. That means energy stocks like Chevron can potentially pay off in a major way. Chevron shares are currently trading at $156.50, but several analysts believe this stock has big upside for 2025.
Josh Silverstein of UBS is the most bullish on Chevron. He believes the stock is undervalued by nearly 25% and has recently upgraded his outlook to "strong buy." He also elevated his share price target from $192 to $194. Biraj Borkhataria of RBC Capital's expectations are slightly more modest, but he's raised his outlook from $170 to $175 and gives Chevron a "buy" rating.
Chevron shareholders also benefit from passive income. For the past 10 years, Chevron has consistently paid dividends. Currently, the oil giant pays a 4.17% dividend, which is distributed to shareholders quarterly. If the Trump administration clears the way for more oil drilling, Chevron's dividend and share price could increase in the next four years.
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The Geo Group- (NYSE: GEO)
Donald Trump's immigration policies may not be popular with all Americans, but with his party controlling both houses of Congress, a legislative crackdown on illegal immigration is likely. If Trump's campaign statements are any indicator, there will also be an equally strong crackdown on violent crime. Both of those developments could benefit The GEO Group (GEO).