State Of The Union Address Puts These 3 Stock Sectors In Focus

President Obama has been previewing objectives from his State of the Union address early this year, alerting investors to new policies that could have an impact on some key sectors in 2015.

Typically an affair shrouded in mystery, the annual State of the Union address has been a president’s way to unveil new policy goals for the year in front of a national television audience. But since that audience has shrunk significantly over the past decade, the Obama administration has attempted to revitalize the tradition for the Internet era. The White House staff sent out an email blast last week to ask Americans what should be in the address; the administration has already hyped the speech’s major policy goals on sites such as LinkedIn and Twitter.

With State of the Union topics announced before the actual speech, investors can be keyed in for which industries to watch before the president stands before Congress Tuesday night. Over the past two weeks, Obama has toured the country speaking about key issues that could affect three sectors.

Consumers protected

With the hack of the Pentagon’s Twitter and YouTube accounts still fresh on the country’s minds, cybersecurity is understandably a central issue for the president in 2015. Computer-integrated systems and Internet services are two industries that could benefit from a renewed interest in this issue.

Obama hopes to focus on how the government responds to online threats and cybercrime as well as help improve data policies between companies and consumers. Nodding to data breaches at retailers such as Home Depot (HD) and Target (TGT) last year, one proposal would require firms to inform customers of data breaches within 30 days, among other protections for consumers.

Fortinet Inc (FTNT - Snapshot Report) and Zix Corp (ZIXI - Snapshot Report) are two companies in the thick of these new cyber wars and merit a look before the president mentions cybersecurity in his address. Fortinet offers network security appliances and security to business enterprises, service providers and governments worldwide and currently holds a Zacks Rank #2 (Buy). Zix, which provides email encryption services and electronic-prescription services for doctors and pharmacies, also holds a Zacks Rank #2 (Buy).

Homeowners boosted

But even if Home Depot did take a hit after its data breach, it might get some help from the president and his new housing policies.

In Phoenix, Arizona, this month, Obama announced he would take executive action to reduce the Federal Housing Agency’s mortgage insurance premiums by 0.5 percent, a move the White House estimates would save homebuyers an average of $900 a year.

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Robert Capasso 4 years ago Member's comment

You left out two of the biggest areas he will fail at too.. keystone and net neutrality..

Mary Connors 4 years ago Member's comment

You're kidding right? This president will not getting any of his government handout crap passed for the next two years.