Before The Move: Stocks To Own If Trump Wins

As the November 8 U.S. presidential election draws near, voter polls have tightened following the October 28 reveal that the FBI has renewed its probe into Democratic nominee Hillary Clinton's email practices. Goldman Sachs argued last week that Clinton's diminished lead gives Republican nominee Donald Trump a "potential," albeit narrow, path to victory, and several Wall Street firms have now offered up their "Trump stock picks" as investors grapple with a narrower race and widely-divergent policies from the two candidates.

CLSA names top Trump stocks

Writing in an October 17 research note, CLSA's Desh Peramunetilleke argues that a Trump presidency would positively impact infrastructure, aerospace and defense, oil and gas, biotech, gold, and companies with large overseas cash holdings. On the other hand, the analyst says investment themes that will be negatively impacted include equities and other risky assets, the bond market, industrials and U.S. exporters, global software and outsourcing companies, sectors that rely on foreign workers, and big banks under a potential reinstatement of Glass-Steagall.

Based on those predictions, Peramunetilleke offers a small selection of Trump-beneficiary stocks. In the infrastructure basket, he names Caterpillar (CAT), Cummins (CMI), PACCAR (PCAR), Cemex (CX), Fluor (FLR) and Jacobs Engineering (JEC).

In defense, Peramunetilleke likes United Technologies (UTX), Honeywell (HON), Boeing (BA), Lockheed Martin (LMT), Raytheon (RTN) and Northrop Grumman (NOC).

Turning to a Trump focus on conventional fossil fuel companies, the analyst picks ConocoPhillips (COP), Anadarko (APC), Pioneer (PXD), Apache (APA) and Continental Resources (CLR).

Seeing a removal of the "anti-biotech" overhang under Trump, Peramunetilleke offers Amgen (AMGN), Gilead (GILD), AbbVie (ABBV) and Celgene (CELG).

Among "safe haven" gold stocks, he names Newmont Mining (NEM), Randgold (GOLD) and AngloGold (AU).

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Disclosure: None.

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Chee Hin Teh 4 years ago Member's comment

Thanks for sharing

Chee Hin Teh 4 years ago Member's comment

Thanks for sharing