As the U.S. presidential campaign gains momentum leading up to election day on November 5th, it would be wise for investors to consider adjusting their portfolio and investment research to take into account the impact the election outcome could have on their holdings. Whether the ultimate result is a re-election of the Democratic Party or the return of the Republican Party to power, we’ve got you covered here at Trading Central.
Utilizing Trading Central’s Strategy Builder, we have created two specific themes that cover the entities that are set to benefit from either a Democratic or Republican victory in November. Moreover, we will look at some of the stocks that make up the security universe for each strategy using other TC tools such as Fundamental Insight and Market Buzz.
The pro-Democrat stock universe primarily includes companies in the Utilities (Regulated), Industrial Products, and Chemicals sectors. Among the most prominent names are Tenet Healthcare (THC), Clean Harbors (CLH), and Southern Co (SO). Let's take a closer look at these companies:
THC US
Tenet Healthcare, the leading diversified healthcare services company, currently tops our screener. This $15.89 billion corporation holds a Very Strong TC Quantamental Rating of 75, the highest in our list and within its industry. The stock also boasts the strongest EPS growth, up +129.57% last quarter compared to the previous year. In 2024, the stock has surged 118.1%. However, Market Buzz indicates a Neutral sentiment, with a score of 53.
CLH US
Clean Harbors, an environmental services provider with a market cap of $13.27 billion, currently has a Moderate TC Quantamental Rating of 53 and a year-to-date performance of +44.1%. Despite its relatively lower Quant Rating, Clean Harbors exhibits the third-highest 5-Year Historical EPS Growth Rate at 43.06% and enjoys a bullish sentiment score of 72 in Market Buzz.
SO US
Southern Co, the energy giant, has a TCQR of 60, higher than Clean Harbors but slightly below Tenet Healthcare, indicating a Strong rating. The company also benefits from a bullish sentiment with a score of 57 out of 100 according to TC’s Market Buzz. Additionally, the utilities company has risen 21.9% this year and recorded an EPS growth rate of 43.42% last quarter compared to the prior year.
Shifting focus to companies poised to benefit from a Republican win, the key sectors are Industrial Products, Semiconductors, and Oil & Gas. Notable names in this universe include Nvidia (NVDA), Axon Enterprise (AXON), and Eli Lilly (LLY). Let’s delve into these companies further:
NVDA US
Nvidia, the semiconductor leader, currently boasts a Strong TC Quantamental Rating of 64 and an impressive year-to-date price surge of 147.8%. The chip maker reported trailing twelve-month revenue of $96.31 billion and an astounding 168% EPS growth rate (last quarter vs. prior year). However, Market Buzz shows a neutral sentiment for Nvidia, with a sentiment score of 45, reflecting a cautious outlook among investors.
AXON US
Axon Enterprise, a public safety tech company, holds the strongest EPS growth rate in our list at 231.25% when comparing the last quarter to the prior year. Despite a Moderate TC Quantamental Rating of 54, the company enjoys a bullish sentiment according to Market Buzz, with a sentiment score of 70 out of 100, indicating a favorable investor outlook. Additionally, Axon has outperformed the market with a 45% price increase in 2024.
LLY US
Eli Lilly, the pharmaceutical giant, has a Strong TC Quantamental Rating of 56 and ranks third in price appreciation among our screener’s stocks, up 62.1% year-to-date. The company, with a market capitalization of $864.43 billion, is the second-largest on our shortlist. Like Axon, Eli Lilly holds a bullish sentiment score of 65 out of 100, reflecting positive investor sentiment.
As the U.S. presidential election draws nearer, the potential shifts in policy and market sentiment make it imperative for investors to be proactive. By leveraging tools like Trading Central’s Strategy Builder, Fundamental Insight, and Market Buzz, investors can position their portfolios to capitalize on the opportunities presented by either election outcome. Staying ahead of these trends will be key to navigating the market’s reaction and achieving strong returns in the months following the election.
