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Stocks to Watch for a Potential Kamala Harris Presidency
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In a turn of events, President Biden has officially renounced his reelection bid and is instead putting his support behind his Vice President, Kamala Harris.
Obviously, this would be a historic merch if Mrs. Harris was able to defeat the Republican presidential nominee Donald Trump in his quest for a second term.
Considering Mr. Trump’s presidency previously came on the heels of narrowly defeating Hillary Clinton, the US looks more steadfast for what would be its first female president if Harris was elected.
To that point, the Harris campaign has already raised over $100 million since President Biden’s endorsement, garnishing record-breaking donations and support from democratic delegates.
With Kamala Harris being the presumptive presidential nominee at next month's Democratic National Convention (DNC), let’s discuss a few stocks and sectors that should be kept in mind for her potential presidency as opposed to the Biden or Trump trade.
One of the most popular but confrontational topics of the upcoming election will be on the broader legalization of abortion or the pro-choice narrative. Harris stands pro-choice while Trump and his running mate JD Vance have stood with the opposing pro-life initiative.
Undoubtedly, higher standards for women’s health will be of significant interest, especially under a Harris presidency and Organon is a healthcare company that focuses on the well-being of women throughout their life cycle.
Organon’s stock has been one of the market's top performers this year with annual earnings expected to rise 8% in fiscal 2024 to $4.47 per share. Plus, OGN still trades at $22 and just 4.3X forward earnings with FY25 EPS projected to rise another 2%.
Image Source: Zacks Investment Research
Even better, is that OGN offers a very generous 5.18% annual dividend yield that towers over the S&P 500’s 1.29% average.
Image Source: Zacks Investment Research
Big Tech
Notably, famed analyst and CNBC contributor Jim Cramer believes Kamala Harris will be more sophisticated when it comes to business on Wall Street than Biden. Cramer and other pundits think President Biden has been too strict on big tech but have put emphasis on the notion that Mrs. Harris understands Silicon Valley with her brother-in-law Tony West being a former general counsel of PepsiCo (PEP - Free Report) ) and currently serving as a chief legal officer to Uber Technologies (UBER - Free Report) .
ESG & Infrastructure
President Biden’s historic $1.2 trillion infrastructure bill will continue to spark various areas of the economy for years to come, most notably the industrial products and construction sectors.
Mrs. Harris should share a similar enthusiasm for building out infrastructure-related assets in the US and two of the hottest infrastructure stocks have been Fluor Corporation (FLR - Free Report) which sports a Zacks Rank #1 (Strong Buy) and Sterling Infrastructure (STRL - Free Report) with a Zacks Rank #3 (Hold).
Notably, Sterling Infrastructure’s stock has soared over +400% in the last three years with Fluor shares up nearly +200%.
Furthermore, Mr. Harris has a strong stance on climate change and environmental policies which should support ESG (Environmental Social Governance) investors and the transformation of the broader oil and gas industry to include more renewable energy. While the current vice president has previously gone after Exxon Mobil (XOM - Free Report) in regards to environmental standards, the oil giant has made strides to reduce its carbon footprint with BP (BP - Free Report) planning to be net zero on carbon by the year 2050.
However, it's noteworthy that both Exxon Mobil and BP have a Zacks Rank #4 (Sell) at the moment which is predicated on the trend of declining earnings estimate revisions.
Final Thoughts
Although Kamala Harris has secured the necessary endorsements to become the Democratic presidential nominee there are still some grey areas as to potential policies on antitrust regulations that could affect big bank stocks and mergers which Trump has been deemed more tolerable on than Biden.
The same can be said about the stance Mrs. Harris will take on foreign tariff policies which may affect Chinese equities in particular as former President Trump has favored a high tariff policy on China. That said, we may get more clarity on these economic viewpoints when the current vice president potentially selects her running mate at the DNC in August.
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Stocks to Watch for a Potential Kamala Harris Presidency
In a turn of events, President Biden has officially renounced his reelection bid and is instead putting his support behind his Vice President, Kamala Harris.
Obviously, this would be a historic merch if Mrs. Harris was able to defeat the Republican presidential nominee Donald Trump in his quest for a second term.
Considering Mr. Trump’s presidency previously came on the heels of narrowly defeating Hillary Clinton, the US looks more steadfast for what would be its first female president if Harris was elected.
To that point, the Harris campaign has already raised over $100 million since President Biden’s endorsement, garnishing record-breaking donations and support from democratic delegates.
With Kamala Harris being the presumptive presidential nominee at next month's Democratic National Convention (DNC), let’s discuss a few stocks and sectors that should be kept in mind for her potential presidency as opposed to the Biden or Trump trade.
Organon & CO (OGN - Free Report)
Zacks Rank #1 (Strong Buy)
One of the most popular but confrontational topics of the upcoming election will be on the broader legalization of abortion or the pro-choice narrative. Harris stands pro-choice while Trump and his running mate JD Vance have stood with the opposing pro-life initiative.
Undoubtedly, higher standards for women’s health will be of significant interest, especially under a Harris presidency and Organon is a healthcare company that focuses on the well-being of women throughout their life cycle.
Organon’s stock has been one of the market's top performers this year with annual earnings expected to rise 8% in fiscal 2024 to $4.47 per share. Plus, OGN still trades at $22 and just 4.3X forward earnings with FY25 EPS projected to rise another 2%.
Image Source: Zacks Investment Research
Even better, is that OGN offers a very generous 5.18% annual dividend yield that towers over the S&P 500’s 1.29% average.
Image Source: Zacks Investment Research
Big Tech
Notably, famed analyst and CNBC contributor Jim Cramer believes Kamala Harris will be more sophisticated when it comes to business on Wall Street than Biden. Cramer and other pundits think President Biden has been too strict on big tech but have put emphasis on the notion that Mrs. Harris understands Silicon Valley with her brother-in-law Tony West being a former general counsel of PepsiCo (PEP - Free Report) ) and currently serving as a chief legal officer to Uber Technologies (UBER - Free Report) .
ESG & Infrastructure
President Biden’s historic $1.2 trillion infrastructure bill will continue to spark various areas of the economy for years to come, most notably the industrial products and construction sectors.
Mrs. Harris should share a similar enthusiasm for building out infrastructure-related assets in the US and two of the hottest infrastructure stocks have been Fluor Corporation (FLR - Free Report) which sports a Zacks Rank #1 (Strong Buy) and Sterling Infrastructure (STRL - Free Report) with a Zacks Rank #3 (Hold).
Notably, Sterling Infrastructure’s stock has soared over +400% in the last three years with Fluor shares up nearly +200%.
Furthermore, Mr. Harris has a strong stance on climate change and environmental policies which should support ESG (Environmental Social Governance) investors and the transformation of the broader oil and gas industry to include more renewable energy. While the current vice president has previously gone after Exxon Mobil (XOM - Free Report) in regards to environmental standards, the oil giant has made strides to reduce its carbon footprint with BP (BP - Free Report) planning to be net zero on carbon by the year 2050.
However, it's noteworthy that both Exxon Mobil and BP have a Zacks Rank #4 (Sell) at the moment which is predicated on the trend of declining earnings estimate revisions.
Final Thoughts
Although Kamala Harris has secured the necessary endorsements to become the Democratic presidential nominee there are still some grey areas as to potential policies on antitrust regulations that could affect big bank stocks and mergers which Trump has been deemed more tolerable on than Biden.
The same can be said about the stance Mrs. Harris will take on foreign tariff policies which may affect Chinese equities in particular as former President Trump has favored a high tariff policy on China. That said, we may get more clarity on these economic viewpoints when the current vice president potentially selects her running mate at the DNC in August.