The 2024 U.S. Presidential election is just a few weeks away. This means that investors are already taking steps to prepare for the impact that will ripple across markets when the votes are counted. As Donald Trump and Kamala Harris stand on stark opposite sides of the political aisle, their election would likely spark significant momentum for some sectors at the expense of others.
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The race to the White House will likely be a close one. As such, investors are hedging their bets as the nation prepares for the highly anticipated election. But what are the best sectors to be betting on for both candidates? Let’s take a closer look.
What Are the Best Stocks to Buy if Trump Wins?
During his presidency, Trump famously favored tax cuts for corporations and deregulations. Earlier this year, he discussed rolling back the pro-climate policies that limit the power of the fossil fuel industry. If he is re-elected, he’s likely to do exactly that, paving the way for oil and gas producers to expand operations. Here are a few top oil stocks, according to analyst coverage.
- Schlumberger (SLB) – This stock holds a Strong Buy Consensus, with 14 Buy ratings, one Hold, and zero sells over the past three months. Its average price target of $65 represents upside potential of roughly 53%.
- ConocoPhillips (COP) – This oil industry leader holds a Strong Buy Consensus, with 12 Buy ratings, three Holds, and zero sells over the past three months. Its average price target of $134 represents a 27.49% change from current levels.
Some Investors Are Increasing Their Bets on Financial Stocks
According to the Wall Street Journal, some investors are increasing their bets on the financial services sector in anticipation of Trump rolling back regulations on banking. Two of the highest-rated bank stocks heading into Election Day are as follows.
- Bank of America (BAC) – Analysts are highly bullish on BofA, which holds a Strong Buy Consensus based on 13 Buys, four Holds, and zero Sells. Its average price target of $46.50 indicates upside potential of 11%.
- Goldman Sachs (GS) – This Wall Street leader is rated almost as highly. Analysts also maintain a Strong Buy Consensus based on 12 Buys, four Holds, and zero Sells. The average price target of $564 represents an 8.97% change from current levels.
What are the Best Stocks to Buy if Harris Wins?
During Harris’ time in the White House, the Biden administration has prioritized the development of clean energy technology. This includes everything from electric vehicles to fuel cell energy production. Here are a few of the top renewable & green energy stocks according to analysts.
- GE Aerospace (GE) – Formerly the General Electric Company, GE Aerospace isn’t a typical green energy company. But it ranks among the sector’s top-rated stocks, maintaining a Strong Buy consensus based on 11 Buy ratings and no Holds or Sells. Its average price target of $209 indicates 8% upside potential.
- Sunrun (RUN) – One of Wall Street’s favorite solar energy stocks, Sunrun maintains a Moderate Buy consensus based on 10 Buys, six Holds, and zero Sells. The stock’s average price target of $24 is highly bullish, implying upside potential of 66%.
Harris Intends to Prioritize Marijuana Legalization
Another sector that has thrived over the past four years is cannabis. Harris recently stated that she intends to prioritize full marijuana legalization if elected. If successful, that type of policy could send many cannabis stocks to new heights. Here are a few of the sector’s top-rated names.
- Green Thumb Industries (GTBIF) – This cannabis producer currently boasts a Strong Buy Consensus. While it only has three analyst ratings in the last three months, all three are Buys with more Buy ratings issued before. The average price target of $16 represents a 52.48% change from the last price of $10.29.
- Trulieve Cannabis (TCNNF) – A consistently high performer among cannabis stocks, Trulieve also holds a Strong Buy Consensus based on three Buy ratings with no Holds or Sells. Its average price target of $20 represents a 63.81% change from the last price of $12.27.
The Race Will Be Close
With two weeks until the election, polls show that the race will be close, regardless of who wins. Investors will likely be hedging their bets between now and election day in an attempt to mitigate the impact on financial markets. This means that assessing the most likely winners in either outcome makes sense and will likely be a popular strategy.
