Written by: Angela Akers
Temperatures have been heating up over the last week as we move toward home base in the 2024 Presidential Election which culminates this coming Tuesday, November 5th. Former President Donald Trump is running on the Republican ticket and Vice President Kamala Harris is running on the Democratic ticket, and they could not be more different in both character and policy. While this isn’t the platform to debate the pros and cons of the candidates, it is the platform to discuss which companies stand to benefit from one or the other.
It’s been a topic on CNBC, and I’ve seen countless articles on the web regarding the topic. Most of the selections and articles are based solely on opinion and speculation. However, there was one article from Forbes that I enjoyed and believed was pretty comprehensive entitled, “Best Stocks to Buy if Trump or Harris Wins in 2024.” The article was written by Robert Daugherty and he listed 13 stocks for each candidate and discussed the policy shifts which influenced his decisions. In the article, he touts these stocks as “some of the best investment opportunities for each potential outcome.”
Additionally, I appreciated that he broke his selections out by sector. Trump’s sectors include Energy, Defense, Financial, Infrastructure and Pharmaceutical, while Harris’ sectors were Clean Energy/Electric Vehicles, Infrastructure with Green Focus, Healthcare, Cannabis and Technology with a cybersecurity focus.
Per my usual course of business, I decided to create a couple of WatchLists to see how VectorVest’s objective analysis rated each of the stock selections as a group and individually. For your perusal, I added the two WatchLists to the OverView WatchList Group labeled: Forbes Harris Stocks and Forbes Trump Stocks.
Looking at the WatchList’s Averages as of last night’s close, the Trump WL is undervalued according to a Price to Value comparison, has favorable long-term price appreciation potential (RV of 1.13) and above average safety (RS of 1.12), Overall, the stocks are currently trending modestly higher (RT of 1.03) and are able to resist severe or lengthy drawdowns as indicated by a CI of 1.06. Digging in further, the Trump selections are bellwethers in their sectors; XOM, LMT, JPM, CAT and MRK for example.
The Harris WL is slightly overvalued according to a Price to Value comparison but does have a favorable long-term price appreciation potential (RV of 1.14) and above average safety (RS of 1.16), Overall, the stocks are currently trending lower (RT of 0.88) and are not able to resist severe or lengthy drawdowns (CI of 0.98). Delving in here, we find that many of these selections are bellwethers in their arenas as well.
After looking at the lists, I wouldn’t say the lists were bad by any means, many investors believe that you can’t go wrong with a bellwether stock. However, I’m not sure I would say in all cases that they will be the “best investment opportunities,” especially when you consider an individual’s risk tolerance. I prefer to put the odds more in my favor and focus on the objective analysis that VectorVest gives me.
It’s easy to do. For instance, as you know, I favor safe stocks. To find the safest selections in the cited business sectors in the article (or any sector for that matter), I can right click on any of the stocks in either WatchList and select View Stocks In Business Sector. In the new window, I would sort by RS Desc which would bring the safest stocks in that sector to the top of the list and make my selections from there. You can do this for any investment style, just sort by your favorite indicators and the “best investment opportunities” for you will rise to the top.
That’s just one example of how you can use VectorVest to optimize your post-election stock selection. Make sure that you check out this week’s “Special Presentation” where Mr. Steve Chappell will give you further direction on how to find the Best Stocks To Buy Post Presidential Election.
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