Republican policy winner stocks by sectors - GS
Jan. 31, 2024 1:01 PM ET
By: Monica L. Correa, SA News Editor
87 Comments
 Brandon Bell/Getty Images News
Goldman Sachs analysts outlined sectors -- and respective stocks -- that could outperform during a Republican presidential win, as elections approach.
In their “Republican policy outperformers basket,” GS analysts have selected stocks that would do better if a Trump-led Republican House takes over.
Republican policy outperformers by sector:
The Financials sector (NYSEARCA: XLF) - Companies benefit from easing capital rules and antitrust, encouraged in a deal-making environment and additional trading revenue during election years.
In the capital markets rebound category, companies involved are Jefferies Financial Group ( JEF), Evercore ( EVR), The Carlyle Group ( CG), Raymond James Financial ( RJF), Stifel Financial Corp. ( SF), Moelis & Co. ( MC), TPG ( TPG), PJT Partners ( PJT), and Piper Sandler ( PIPR).
In the de-regulation category: Discover Financial Services ( DFS), Morgan Stanley ( MS), Wells Fargo & Co. ( WFC), Citigroup ( C), JPMorgan Chase ( JPM), Federal National Mortgage Association ( OTCQB:FNMA).
In the regional bank M&A category: Comerica ( CMA), First Horizon Corp. ( FHN), and Synovus Financial Corp. ( SNV).
The Steel industry ( SLX) - American equities could benefit from additional steel manufacturing in the U.S.
In the steel category: Vale SA ( VALE), Steel Dynamics ( STLD), Reliance Steel & Aluminum ( RS), Nucor Corp. ( NUE), Commercial Metals ( CMC), Cleveland-Cliffs ( CLF), ATI ( ATI), ArcelorMittal ( MT), Carpenter Technology ( CRS), Gerdau ( GGB), Ryerson Holding ( RYI), Worthington Steel ( WS).
Domestic security and law enforcement - Trump said he plans to allocate record funding to hire and retain police officers, strengthen quality immunity and other protections for police officers, and increase penalties for assaults on law enforcement.
In the domestic security basket: Axon Enterprise ( AXON), Parsons Group. ( PSN), The GEO Group ( GEO), CoreCivic ( CXW), Gen Digital ( GEN), CyberArk Software ( CYBR), SentinelOne ( S), Zscaler ( ZS), Crowdstrike Holdings ( CRWD), Palo Alto Networks ( PANW).
Onshoring enablers - Stocks involved in electrification and automation would benefit from onshoring initiatives.
In this category: Rockwell Automation ( ROK), Regal Rexnord Corp. ( RRX), Flex Ltd ( FLEX), Jabil ( JBL), Amphenol Corp. ( APH), TE Connectivity ( TEL).
Onshore production and manufacturing - Companies that rely on domestic supply chain with a high manufacturing footprint in the U.S. or with announced initiatives to move operations home.
In this category: Mohawk Industries Inc. ( MHK), KLA Corp. ( KLAC), Lam Research Corp.( LRCX), Texas Instruments ( TXN), Applied Materials ( AMAT), Intel Corp. ( INTC), Broadcom Inc. ( AVGO).
Border construction - These companies were involved in the construction of tighter borders during the Trump administration.
In this category: Fluor Corp. ( FLR), AECOM ( ACM), KBR Inc. ( KBR), Jacobs Solutions ( J), Quanta Services ( PWR), Caterpillar Inc. ( CAT), Granite Construction ( GVA), Cemex SAB de CV ( CX), Eagle Materials ( EXP), Martin Marietta Materials ( MLM), Vulcan Materials ( VMC).
Small-business exposure - These are companies with almost all of their sales generated from small businesses.
In the small business exposed category: Yelp Inc. ( YELP), Toast Inc. ( TOST), Payoneer Global ( PAYO), AGCO Corp. ( AGCO), Paychex ( PAYX), Automatic Data Processing ( ADP), Deere & Co. ( DE), Upwork ( UPWK), Paycor HCM ( PYCR), ACV Auctions ( ACVA), BILL Holdings ( BILL), DigitalOcean Holdings ( DOCN), Squarespace Inc. ( SQSP), Corteva Inc. ( CTVA).
Energy (NYSEARCA: XLE) - This sector benefits from traditional commodity production policies. During the Trump administration, the U.S. approved the Keystone XL and Dakota Access pipelines, which opened federal lands and offshore areas for oil and gas production.
In this category: Exxon Mobil ( XOM), Cenovus Energy ( CVE), Chevron Corp. ( CVX), Suncor Energy ( SU), Patterson-UTI Energy ( PTEN), Helmerich & Payne ( HP), Halliburton ( HAL), Schlumberger NV ( SLB), Diamondback Energy ( FANG), Canadian Natural Resources ( CNQ), Marathon Oil Corp. ( MRO), EOG Resources ( EOG), Devon Energy ( DVN), Coterra Energy ( CTRA), Ovintiv Inc. ( OVV), Matador Resources ( MTDR), Murphy Oil Corp. ( MUR), SM Energy ( SM), World Kinect Corp. ( WKC), Cheniere Energy ( LNG), ONEOK Inc. ( OKE), The Williams Companies ( WMB), Kinder Morgan ( KMI).
Coal ( COAL), ( XAL1:COM) - U.S. equities that could benefit from additional coal in the U.S.
In this category: Peabody Energy ( BTU), Uranium Energy ( UEC), CONSOL Energy ( CEIX), Contrus Energy Corp. ( LEU), Hallador Energy ( HNRG). |
