Trump's "America First" policies could shake up the stock market. Here are the top stocks that might benefit:
- Lockheed Martin (Defense)
- Raytheon Technologies (Defense)
- Exxon Mobil (Energy)
- Chevron (Energy)
- Caterpillar Inc. (Infrastructure)
- Vulcan Materials Company (Construction)
- JPMorgan Chase (Banking)
- Bank of America (Banking)
- Nucor (Steel)
- Martin Marietta Materials (Construction)
Key takeaways:
- Defense and energy stocks could see a boost
- Banks might benefit from looser regulations
- Infrastructure and construction companies could cash in on spending plans
But watch out:
- Market volatility is likely
- Trade tensions could hurt some sectors
- Policy shifts can quickly change the game
Remember: Do your homework and diversify. No stock is a guaranteed winner, especially when politics are involved.
| Sector | Potential Winners | Why They Might Win |
|---|---|---|
| Defense | Lockheed Martin, Raytheon | Increased military spending |
| Energy | Exxon Mobil, Chevron | Looser regulations, Middle East focus |
| Banking | JPMorgan Chase, Bank of America | Deregulation, higher interest rates |
| Infrastructure | Caterpillar, Vulcan Materials | Possible $1 trillion spending plan |
| Steel | Nucor | "Buy American" policies, tariffs |
Bottom line: These stocks might do well under Trump, but always invest carefully and think long-term.
Related video from YouTube
What 'America First' Means for Investors
Trump's "America First" policy could shake up the investment landscape. Let's break down how it might affect different sectors.
Energy: More Drilling, Less Red Tape
Trump wants to unleash U.S. energy production. This could be a big win for oil and gas companies.
| Company | Market Value | 1-Year Return | 3-Year Return (Annualized) |
|---|---|---|---|
| Exxon Mobil | $500.4 billion | 3.2% | 32.1% |
"Company costs, particularly around permitting, could decline under a Trump presidency, making oil companies more profitable." - Matt Stephani, Cavanal Hill Investment Management
Defense: Beefing Up the Military
Trump's tough talk on national security? It could mean more cash for defense contractors. Lockheed Martin, the F-35 maker, might be in for a windfall.
| Company | 1-Year Return | 3-Year Return (Annualized) |
|---|---|---|
| Lockheed Martin | 31.2% | 20.1% |
Banks: Cutting the Red Tape
Banks might see fewer regulations under Trump. This could open the door for more mergers and fatter profits.
| Company | 1-Year Return | 3-Year Return (Annualized) |
|---|---|---|
| JPMorgan Chase | 53.7% | 14.1% |
"Trump was also able to enact significant changes throughout the banking industry during his tenure in the White House." - Frank Gargano, American Banker contributor
Steel and Infrastructure: Building America
Trump's push for U.S. manufacturing and infrastructure could be a boon for companies like Nucor. Despite recent hiccups, the long-term outlook under Trump policies might be bright.
| Company | 1-Year Return | 5-Year Return (Annualized) |
|---|---|---|
| Nucor | -17.0% | 25.3% |
Small-Cap Stocks: The Comeback Kid?
Small U.S. companies thrived during Trump's first term. If he wins again, we might see these underdogs bounce back.
The Flip Side: Potential Risks
But it's not all roses. Some sectors might face headwinds:
- Trade wars from higher tariffs
- Labor shortages due to stricter immigration
- Less support for green energy companies
Smart investors will keep a close eye on these policy shifts and adjust their game plan accordingly.
Lockheed Martin: A Defense Giant in Trump's "America First" Era
Lockheed Martin, the Pentagon's top weapons supplier, is a prime pick for investors banking on Trump's "America First" policy. Here's why:
F-35 Program: Turbulent but Improving
The F-35 fighter jet program, once 20% of Lockheed's revenue, has had its share of drama:
| Year | Event | Outcome |
|---|---|---|
| 2016 | Trump slams F-35 costs | $4B market value drop |
| 2019 | Cost-cutting efforts | F-35 price drops to $85M |
| 2023 | Delivery hiccups | 120 planes in storage |
| 2024 | TR-3 deliveries start | Production steadies at 156/year |
Despite the bumps, Lockheed has slashed F-35 costs by over 60%.
Government Contracts: Lockheed's Bread and Butter
With 78% of revenue from U.S. government orders, Lockheed's thriving under increased defense spending:
- Q1 2024: $159B backlog
- 2022: $47B in military contracts
Global Demand: Fueling Growth
Trump's relaxed foreign arms sales policies have boosted Lockheed:
- Q1 earnings jumped to $1.70B from $1.16B
- Net sales up 23% to $14.34B
- Recent deals: Czech Republic (24 F-35s), South Korea (20 F-35s)
Missiles and Fire Control: The Star Division
This unit, including THAAD missile defense, is on fire:
- April 2024: $2.4B THAAD contract, mostly for Saudi Arabia
- Ramping up Patriot interceptors from 550 to 650 yearly
Investor Outlook: Clear Skies Ahead
With global tensions high and U.S. military spending up, Lockheed's future looks bright:
- FY2025 defense budget: $923.3B (4.1% increase)
- Defense stocks up 48% since Russia-Ukraine war started
"TR-3 and Block 4 are game-changers for us", says Bridget Lauderdale, VP of Lockheed's F-35 Program.
Despite hurdles, Lockheed Martin's government ties and global demand make it a top contender in Trump's "America First" landscape.
2. Raytheon Technologies
Raytheon Technologies is riding high on the "America First" defense wave. Here's why investors can't stop talking about this aerospace and defense powerhouse:
Big Contracts, Bigger Profits
Raytheon's order books? They're PACKED. Check this out:
| Year | Who's Buying | How Much | What's It For |
|---|---|---|---|
| 2022 | U.S. Military | $705 billion | Part of a massive defense spending spree |
| 2024 | U.S. Navy | $192 million | Next-gen jammer tech |
| 2024 | U.S. Military | $1.2 billion | Air-to-air missiles |
| 2024 | Germany | $1.2 billion | Patriot defense systems |
Going Global
Trump's pro-arms sales stance? It's opened doors for Raytheon:
- Saudi Arabia might drop $350 billion on weapons
- Countries are lining up to buy AMRAAM missiles
Stock Market Superstar
Raytheon's stock is on fire:
- Up 18% this year
- The S&P 500? Only up 11%
CEO's Crystal Ball
Tom Kennedy, Raytheon's boss, is pumped:
"This administration is backing U.S. companies in the global market. It's a game-changer for us."
What's Next?
The future looks bright for Raytheon:
- U.S. defense spending could go even higher
- The military wants to be "ready for anything"
- Everyone's after missiles, sensors, and smart bombs
Bottom line? Raytheon Technologies is a top pick for "America First" investors. Government deals, global growth, and a defense-friendly White House all point to one thing: ka-ching!
3. Exxon Mobil
Exxon Mobil, America's oil giant, is set to ride the wave of Trump's "America First" energy policies. Here's why investors are watching this behemoth:
Trump's Middle East Approach
Trump's Middle East strategy could be a game-changer for Exxon:
- He floated the idea of Exxon helping reclaim ISIS-held oil fields
- His aggressive foreign policy might push oil prices up
Sam Stovall from S&P Capital IQ put it bluntly:
"Anything that one could do from a militaristic perspective would benefit the defense companies and at the same time, if it's related to the Middle East, would probably cause oil prices to skyrocket."
Money Talks
Exxon's numbers speak volumes:
| Metric | Value |
|---|---|
| Dividend Yield | 3.3% |
| Payout Ratio | ~40% |
| Market Cap | $533B |
| Gross Margin | 23.19% |
Production Powerhouse
Exxon's been crushing it lately:
- Q2 2023: Net earnings jumped 17% to $9.2 billion
- Daily production hit a 25-year high
- U.S. production profit more than doubled to $2.4 billion
Smart Moves
Exxon's not resting on its laurels:
- Snagged Pioneer Natural Resources for $60 billion, doubling Permian production
- Slashing costs by focusing on high-return assets
- Dipping toes into low-carbon tech: carbon capture, biofuels, hydrogen
Trump Ties
Exxon's got friends in high places:
- Rex Tillerson, ex-Exxon CEO, was Trump's first Secretary of State
- Potential Russian sanction lift could revive Exxon's massive Rosneft deal
Investor Candy
Exxon's got the goods investors crave:
- Cash flow for days
- Dividend dedication
- Low debt
- Fat profit margins
Oil prices might be down (WTI around $70/barrel), but Exxon's efficiency gains have it primed for growth under Trump's pro-energy policies.
4. Chevron
Chevron, the second-largest U.S. oil company, could be a big winner if Trump returns to office. Here's why:
Money Talks
Chevron's numbers look solid:
| Metric | Value |
|---|---|
| Market Cap | $285.44 billion |
| Dividend Yield | 4.04% |
| Free Cash Flow (2023) | $20.4 billion |
| Net Debt | $15.5 billion (5.9% of total assets) |
In 2023, Chevron's free cash flow was 79% higher than its total dividend payments. That's a good sign.
How's It Doing Now?
Chevron's recent performance is a mixed bag:
- Stock up 9.6% in the last six months
- Q1 2024 revenues: $48.72 billion
- Q1 2024 earnings: $5.50 billion (up 143.5% from last quarter)
- Upstream earnings: $5.24 billion (up 230.3%)
Trump's Potential Impact
If Trump wins, Chevron could benefit from:
- Fewer drilling limits
- Less regulatory pressure
- More exploration permits
Anthony Termini, an investment advisor, says:
"Chevron is one of the largest American oil and gas producers."
This could be a big deal under Trump's energy plans.
Why Investors Like It
Chevron appeals to different types of investors:
- 75% of stock owned by big institutions
- Dividend Aristocrat (25+ years of dividend increases)
- 4.04% dividend yield (S&P 500 average is 1.3%)
- Dividend grew 26.3% from May 2020 to May 2024
What's Next?
Chevron's not sitting still:
- Working on a pressure management project in Kazakhstan
- Investing in carbon capture tech with ION Clean Energy
Chevron faces challenges, but its strong finances and smart moves make it worth watching if Trump wins.
5. Caterpillar Inc.
Caterpillar Inc. (NYSE: CAT) is turning heads as a potential winner under Trump's "America First" policies. Here's the scoop:
Financial Snapshot
| Metric | Value |
|---|---|
| Q2 2024 Sales | $16.7 billion |
| Q2 2024 Adjusted Profit Per Share | $5.99 |
| Operating Profit Margin | 20.9% |
| Enterprise Cash Flow | $3.0 billion |
| Dividend Yield | 3.3% |
Trump's Impact on CAT
CAT's stock jumped 12% after Trump's election. Why? Investors see potential benefits:
- More infrastructure spending
- Less red tape in construction and mining
- A possible $1 trillion infrastructure plan
Recent Performance
CAT's still going strong, even with a 4% dip in Q2 2024 sales:
- Adjusted profit per share up 7.9%
- $3.0 billion in cash flow
- $2.5 billion for share buybacks and dividends
Segment Breakdown
- Construction Industries: $6.4 billion (5% down)
- Resource Industries: $3.2 billion (7% down)
- Energy & Transportation: $6.7 billion (7% up)
Why Investors Are Purring Over CAT
- 23 years of dividend hikes
- Paying dividends since 1925
- 3.3% dividend yield (S&P 500 average: 2%)
- Top dog in construction and mining equipment
The Catch
- Construction and mining can be rollercoaster industries
- Global economic hiccups could hurt
- Infrastructure plans need to get through Congress
Bottom line: CAT's solid financials, market position, and potential Trump policy perks make it a stock to watch for "America First" believers.
sbb-itb-031ede2
6. Vulcan Materials Company
Vulcan Materials Company (NYSE: VMC) is a top pick for investors eyeing Trump's "America First" agenda. As the biggest U.S. construction aggregates producer, Vulcan is set to cash in on increased infrastructure spending.
Key Financials
| Metric | Value |
|---|---|
| Q4 2023 Net Sales Increase | 12% |
| Q4 2023 Gross Margin Expansion | 500+ basis points |
| Full-Year 2023 Sales Growth | 6.5% |
| Expected 2024 Price Increase | 10-12% |
| Projected 2026 EPS | $10.90 |
Trump's VMC Boost
VMC stock jumped 8.7% post-Trump election. Why? Investors bet big on potential infrastructure projects. Vulcan's coast-to-coast presence in high-growth U.S. markets puts it in prime position for Trump's $1 trillion infrastructure plan.
Growth Engines
1. Infrastructure Investment and Jobs Act (IIJA)
$1.2 trillion act. Only 40% allocated so far. Vulcan's ready to grab more.
2. Housing Shortage
U.S. needs 2-8 million more homes. That's a lot of construction work.
3. Pricing Power
Vulcan hiked aggregates prices by nearly 30% in two years. And they're not done yet.
Vulcan's Strengths
- Owns 350+ aggregate facilities across the U.S.
- Aggregates = 75%+ of revenue
- Gobbled up almost 40 companies in top revenue states in the last decade
CEO Speak
"Today is an important milestone as we welcome U.S. Concrete and its talented team to Vulcan while also taking the next step forward in our growth and value creation strategy." - Tom Hill, Vulcan's Chairman and CEO
This move? It's all about getting bigger and better in growing metro areas.
Investor Notes
- Buy-in sweet spot: Below $266
- Forward P/E: 29x
- Dividend: Do your homework on this one
Bottom line: Vulcan's market dominance, pricing muscle, and potential infrastructure windfall make it a solid bet for "America First" investors.
7. JPMorgan Chase
JPMorgan Chase, the biggest U.S. bank, could win big from Trump's "America First" policies. Here's why:
Deregulation Boost
The 2018 rollback of Dodd-Frank could help JPMorgan by:
- Cutting compliance costs
- Freeing up money for loans and investments
- Possibly boosting profits
Growth Potential
JPMorgan's been crushing it:
| Metric | Value |
|---|---|
| Stock Growth (Since Trump's Election) | 178% |
| Commercial Loan Growth (Q3 2016) | 7.2% |
| Current Share Price | $225.37 |
| Market Cap | $641 billion |
| Dividend Yield | 2.04% |
Buying Power
JPMorgan just snagged First Republic Bank, adding $200 billion in loans and securities. This move:
- Grew JPMorgan's market share
- Showed off its financial muscle
- Set it up for more growth as banks consolidate
Interest Rates
If rates go up, JPMorgan could see:
- Better interest margins
- More profit from loans
- Higher returns on deposits
Investment Banking Strength
JPMorgan's got the biggest investment banking operation of any major U.S. bank. This part of the business often does well when markets are choppy, helping balance things out if the economy dips.
Tech Focus
The bank's jumping into new tech and investing in fintech companies, getting ready for the future of digital banking and payments.
For Investors
- Current price: $225.37
- 52-week range: $135.19 - $225.92
- Dividend: $0.48 quarterly, grown 860% over time
JPMorgan looks good under Trump's policies, but remember:
- Rules can change fast
- Banks are always under the microscope
- Past success doesn't guarantee future wins
JPMorgan's size, diverse business, and ability to roll with regulatory punches make it a stock to watch in the "America First" era.
8. Bank of America
Bank of America (NYSE: BAC) is set to ride the "America First" wave. Here's why it's worth a look:
Deregulation's Impact
The 2018 banking act has been a game-changer. For Bank of America, this means:
- Lower compliance costs
- More lending freedom
- Potentially fatter profits
Stock's Been on a Tear
| Metric | Value |
|---|---|
| 1 Year Change | 60.85% |
| Current Share Price | $42.32 |
| 52 Week High | $44.44 |
| 52 Week Low | $24.96 |
| Market Cap | $327.54 billion |
Money Talks
Q2 2024 numbers tell a story:
- $0.83 earnings per share (beat expectations)
- $6.9 billion net income
- Wealth management fees up 14%
- Investment banking fees up 29%
Investors Are Buying In
Banks are hot right now:
- U.S. equity funds saw $45 billion in ONE WEEK
- KBW Bank Index hit its highest since April 2022
Watch Out For
It's not all smooth sailing:
- Trump's tariff talk could shake things up
- Non-banking profits outpacing traditional banking
- Banking sector's still under the microscope post-failures
For Your Portfolio
- 2.5% dividend yield
- 11.57 forward P/E ratio
- $3.5 billion in share buybacks and $1.9 billion in dividends (Q2 2024)
Bank of America's looking strong with deregulation tailwinds. But keep an eye on the economic and political weather - it could get choppy.
9. Nucor
Nucor Corporation (NYSE: NUE) is North America's biggest steel producer and recycler. It's a top pick for investors who think Trump's "America First" policies will continue.
Financial Performance
Nucor's recent numbers:
| Metric | Q2 2024 |
|---|---|
| Net Earnings | $645.2 million |
| Earnings Per Share | $2.68 |
| Net Sales | $8.08 billion |
First half of 2024: $1.49 billion in net earnings ($6.14 per share).
Tariff Impact
Trump's 25% steel import tariffs in 2018 were huge for Nucor. They cut foreign competition and boosted U.S. steel prices, helping Nucor's profits.
Investor Returns
Nucor's been good to shareholders:
- $2.29 billion returned to stockholders (year-to-date)
- Bought back 2.5 million shares (average price: $156.07)
- Paid $0.54 per share dividends in March and June 2024
Future Outlook
Nucor's stock has been up and down in 2024, but analysts are positive:
- Rating: Moderate Buy
- Average price target: $188.75
- Potential upside: 20.21%
Risks
Nucor's profits depend on U.S. trade policies. If those change, it could hurt the company.
Why Nucor Stands Out
1. Market Leader: Biggest steel producer and recycler in North America.
2. Strong Finances: Best credit ratings in North American steel (A-/A-/Baa1).
3. Growth Plan: Expanding core steelmaking and moving into related markets.
4. "Buy American" Winner: U.S.-based operations benefit from these policies.
"We thank the President for taking decisive and meaningful action to address the massive flood of dumped and illegally subsidized steel imports into the United States." - John Ferriola, Nucor's Chairman, CEO and President
If you think "America First" policies will stick around, Nucor's a solid bet in steel.
10. Martin Marietta Materials
Martin Marietta Materials (NYSE: MLM) is a top U.S. building materials supplier. It's a solid pick for investors eyeing Trump's "America First" policies.
Company Snapshot
MLM is the second-largest U.S. aggregates producer. They make cement, asphalt, sand, and gravel. Almost all their revenue (99%) comes from U.S. operations. In Texas, they're the biggest producer of cement, concrete, and aggregates.
Here's a quick look at their financials:
| Metric | Value |
|---|---|
| Share Price | $215.95 |
| Market Value | $13.6 billion |
| Revenue | $3.8 billion |
| P/E Ratio | 26 |
| Dividend Yield | 0.8% |
Why MLM Could Grow
Infrastructure spending could be a big win for MLM. The U.S. needs to pump $2.6 trillion into infrastructure by 2030. Trump's border wall? That could boost demand too. Plus, Congress has already funded more highway construction through 2020.
MLM's been on a roll:
- Earnings per share jumped from $1.83 in 2012 to $6.63 in 2016
- Stock price doubled since February 2016
- Q4 2022: $1.55 per share earnings on 14% revenue growth to $889 million
MLM's CEO, Ward Nye, is confident about the border wall project:
"I think he's going to build that wall."
What Investors Think
Wall Street's pretty bullish on MLM:
- 87.5% of analysts say it's a "Strong Buy"
- Average 1-year price target: $622.25 (8.51% upside)
Watch Out For
- Reliance on U.S. government decisions
- Construction industry ups and downs
- Possible economic slowdowns
If you're betting on Trump's infrastructure plans and "America First" policies, MLM could be a smart play in the construction materials sector.
Risks to Consider
Investing in stocks based on Trump's "America First" policies isn't without risks. Here's what you need to know:
Market Volatility
The stock market can be a wild ride, especially during political shifts. Watch out for:
- Fed policy changes
- Surprise economic downturns
- Big companies missing earnings targets
Trade Troubles
Trump's trade approach can stir up some issues:
- Tariffs could hit 18% of U.S. imports - the highest since the 1930s
- Other countries might hit back with their own tariffs
- Supply chains could get messy
Policy Shifts
"America First" might shake things up:
- The federal deficit could balloon by $7.5 trillion over 10 years
- Healthcare, energy, and defense stocks might feel the heat
Global Factors
Even with a domestic focus, global issues matter:
- Geopolitical drama can spook markets
- Currency swings can hurt multinational profits
Sector Risks
Different industries, different headaches:
| Sector | Watch Out For |
|---|---|
| Energy | Oil prices, green regulations |
| Finance | Interest rates, new rules |
| Tech | Trade limits, privacy laws |
| Manufacturing | Material costs, labor expenses |
Investor Mood Swings
How people feel about stocks matters:
- Election jitters might cause market hiccups
- How folks interpret Trump's policies can move markets fast
To play it smart:
1. Mix up your investments
2. Stay in the loop on policy changes
3. Think long-term, not just about political trends
4. Consider some "safe" investments to balance things out
Wrap-up
Trump's "America First" policies could shake up the stock market. Here's a snapshot of stocks that might come out on top:
| Company | Sector | Key Point |
|---|---|---|
| Lockheed Martin | Defense | 31.2% one-year total return |
| Exxon Mobil | Energy | UBS sees 40% upside potential |
| JPMorgan Chase | Banking | Consensus Buy rating |
| Caterpillar Inc. | Infrastructure | Potential infrastructure spending boost |
| Nucor | Steel | 25.3% five-year annualized return |
But hold your horses. These aren't guaranteed winners. The market's a wild ride, especially when politics are involved.
Key points to remember:
- Defense and energy might get a boost
- Banks could win with looser rules
- Infrastructure stocks might climb
Jim Cramer from CNBC put it this way:
"After this weekend, it sure seems like the Trump stocks are back."
Don't go all in just yet. Do your research, watch for policy shifts, and think big picture. A diverse portfolio is still your best friend, no matter who's calling the shots in Washington.
