Finding the top stocks to buy before the elections is a sharp move. Looking at the potential of Trump 2.0, three stocks with the potential for sustained growth are critical to deriving stable returns. These three companies have emerged as compelling choices in this regard (a Republican win).
Fundamentally, each offers distinct advantages that cater to diverse investment strategies. The first company continues to fortify its position through ambitious expansion projects and stringent cost-saving measures. It holds promise for substantial earnings growth. The second company shines with its robust performance in North America and its booming electric vehicle segment. The company positioned itself at the forefront of automotive innovation. Meanwhile, the third company navigates challenges with resilience, leveraging a massive order backlog and strategic production adjustments to optimize operational efficiency.
American leaders will benefit from Trump’s reelection by continuing to implement his policies, including tax cuts, deregulation, and a focus on strengthening the military and national security.
Exxon Mobil (XOM)
Exxon Mobil (NYSE:XOM) engages in the exploration, production, transportation, and sale of crude oil, natural gas, and petroleum products. The company aims to boost its earnings potency by an additional $12 billion from 2023 to 2027. It reflects a growth rate exceeding 10% per year at constant prices and margins. Ongoing structural cost savings initiatives support this forecast. The company targets cumulative savings of $15 billion by 2027. Beyond the current projects, Exxon Mobil’s pipeline includes the Whiptail development in Guyana and ongoing investments in floating production storage and offloading vessels for projects like Yellowtail and Uaru. These endeavors are poised to boost production capacities and revenue streams significantly.
Additionally, the fact that Exxon Mobil could defend the Pioneer merger against legal objections is evidence of their care in obtaining regulatory permissions. This demonstrates Exxon’s capacity to achieve operational economies and benefits by integrating key acquisitions. Under Trump’s previous administration, energy independence was strongly emphasized. He aggressively favored regulatory policies for the fossil fuel industry. Certainly, Exxon Mobil stands to benefit from similar policies in a second Trump term.
In short, Exxon Mobil is on the top Trump victory stocks list due to its extensive project pipeline and focus on expanding production capacities.
General Motors (GM)
The carmaker General Motors (NYSE:GM) produces vehicles under the Chevrolet, Buick, GMC, and Cadillac brands. In Q1 2024, the company’s EBIT margin was 10.6%. The primary source of this is the high demand for its SUVs and full-size trucks. GM’s tactic of keeping incentives in its truck sector lower than industry averages has been crucial in achieving a 3% yearly rise in sales of full-size pickups for both Chevrolet and GMC. This approach also led to a solid increase in retail market share to 43.8%.
Further, GM had a 21% annual increase in electric vehicle (EV) retail customer deliveries. With that, standout performers like the Cadillac LYRIQ outsell European luxury brand EVs in Q1. Moreover, expanding battery module production by 300% over six months highlights GM’s focus on scaling EV operations. Moreover, GM is taking the initiative to fulfill the increasing demand for EVs. This is seen in the anticipated doubling of capacity by the end of summer. Lastly, GM stands to gain from Trump’s focus on moonshoting American manufacturing and renegotiating trade agreements in the interests of American businesses.
In general, GM’s strong performance in the North American market and expanding position in the EV market sector have placed it on the list of Trump victory stocks.
Boeing (BA)
Boeing (NYSE:BA) specializes in commercial airplanes, defense, space, and security systems. It had revenue of $16.6 billion for Q1 2024. With that, the company had a significant usage of free cash flow amounting to $3.9 billion. This reflects higher expenditures and the timing of receipts and expenditures in line with lower commercial deliveries. Boeing booked 125 net orders, including significant orders for 737-10s and 777Xs, contributing to a backlog of $448 billion. This backlog encompasses more than 5,600 airplanes, indicating robust demand across its commercial aircraft portfolio. Boeing is poised to benefit from increased defense spending, a hallmark of Trump’s previous term. This could continue if he secures a second presidency.
Moreover, Boeing intentionally slowed 737 production to below 38 per month to incorporate quality and safety improvements. This initiative aims to reduce traveled work and address supplier non-conformances. This may boost manufacturing efficiency and product quality. The company has progressive quality initiatives, including relocating inspection and rework teams to Wichita. They have shown initial signs of success in reducing nonconformances entering the Renton factory and improving cycle times.
To conclude, Boeing’s inclusion in the top Trump victory stocks to buy is due to its substantial order backlog and strategic initiatives.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.