For Immediate Release
Chicago, IL – November 22, 2024 – Today, Zacks Investment Ideas feature highlights Oklo OKLO, Coinbase Global COIN, Tesla TSLA, GEO Group GEO and Energy Select Sector SPDR ETF XLE.
Trump Election Victory: 5 Stocks to Benefit Most
Presidential Impact on Stocks
Earlier this month, former President Donald Trump defeated Vice President Kamala Harris to become the president-elect. As I have discussed in previous commentaries, the data suggests that U.S. presidents have little impact on the overarching market for two reasons:
1. The U.S. Economy Is Massive: Though presidents wield the most power in the U.S., the economy is akin to a giant tanker – its immense size and complex interconnectedness make it challenging to switch directions on a dime.
2. Split Government: Over the past few decades, the governmental branches have been split more often than not. The inherent checks and balances thought up by the founding fathers can make it difficult to get an agenda through quickly.
Presidential Impact on Equities: Why This Time Is Different
While the above points are accurate more often than not, President Trump’s second term is likely to be impactful. Because Republicans swept all three branches of government, Trump and his allies will be able to pass their agenda easier than the norm. Though the macroeconomic impact may take a few years to be realized, the Trump win will significantly impact on individual stocks. Below are five stocks that benefit the most from the Trump victory:
1. Oklo
Oklo develops advanced nuclear reactors that provide the clean and efficient power necessary to power AI data centers. The company enjoys a leg up versus the competition because OpenAI CEO Sam Altman serves as the chairman. As if that wasn’t enough, Oklo will now enjoy political power and influence after the Trump transition team tapped Oklo board member Chris Wright to head the Department of Energy (DOE). Though the U.S. is behind in the nuclear race, the appointment clearly signals that the Trump administration will push nuclear ambitions to fuel the artificial intelligence boom.
2. Coinbase Global
Coinbase, the leading U.S. crypto exchange, has been one of the best performing stocks over the past year. However, the stock performance is even more impressive when investors consider the fact that the current political regime has been a thorn in the company’s side. For example, the Securities and Exchange Commission (SEC) sued Coinbase after alleging that it is operating an “unregistered” exchange.
However, Coinbase received some welcome news when then-candidate Trump announced to a cheering crowd at a Bitcoin conference that he intends to fire SEC Chair Gary Gensler on day one of his presidency. Meanwhile, Coinbase CEO Brian Armstrong is already making inroads with the new administration and is expected to meet with Trump and his team to advise them on crypto policy.
3. Tesla
Few people have grown closer to President-elect Donald Trump than Tesla CEO Elon Musk. Musk has essentially bet the company’s future on autonomous driving and robotaxis. Earlier this week,the Trump team promised to cut back regulations on autonomous driving. The news is huge for Tesla because strict regulations have prevented Tesla from rolling out its delayed (and highly anticipated) robotaxis. Further, Sean Duffy, who Trump named for his pick for Secretary of Transportation, is another bullish signal for the stock. In 2018 remarks, Duffy said that AV “technology can be remarkable in keeping our families and kids safe.”
4. GEO Group
GEO spiked 42% on the day after the election –for good reason. The company operates private prisons, mental health facilities, and immigration detention centers. Of course, one of Trump’s primary campaign promises is to clean up the U.S. immigration system and deport illegal entrants into the country. With the pick of Tom Homan for “Border Czar,” Trump is following through on his promise. Homan, the former Acting Director of Immigration and Customs Enforcement (ICE), is an immigration hawk.
5. Energy Select Sector SPDR ETF
Another core promise of the Trump administration is to “unleash American energy” and “drill, baby drill.” Trump plans to deregulate environmental regulations to help U.S. energy producers unlock the country’s natural resources.
Conclusion
The resounding Trump election victory and the Republican “mandate” will dramatically impact stocks like GEO Group, Coinbase, and Tesla.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Geo Group Inc (The) (GEO) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Oklo Inc. (OKLO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
