| | | Stock losers of Republican policy if Trump wins - GS
Apr. 05, 2024 10:38 AM ET
By: Monica L. Correa, SA News Editor
 adamkaz/iStock via Getty Images
Goldman Sachs analysts outlined stocks from several sectors and industries that would underperform if Former President Trump won the presidential election this November.
These are the constituents of the “Republican Policy Underperformers” basket.
Wage pressure - In a tight labor market environment, companies with current wage pressure could face additional challenges if foreign employees expect stricter work permits. These are some of those:
- AMN Healthcare Services Inc. (NYSE: AMN), Dollar Tree Inc. ( DLTR), The Kroger Co. ( KR), Best Buy Co. Inc. ( BBY), Brinker International Inc. ( EAT), Marriott International Inc. ( MAR), Cross Country Healthcare Inc. ( CCRN), HCA Healthcare Inc. ( HCA), Tenet Healthcare Corp. ( THC), Community Health Systems Inc. ( CYH), Hilton Grand Vacations Inc. ( HGV), Universal Health Services Inc. ( UHS), Dollar General Corp. ( DG).
Consumer stocks with tariff risk - Companies in consumer discretionary ( XLY) with exposure to tariffs because of international supply chain or heavy global manufacturing footprint.
- American Eagle Outfitters Inc. (NYSE: AEO), Lululemon Athletica Inc. ( LULU), Target Corp. ( TGT), DICK’S Sporting Goods Inc. ( DKS), NIKE Inc. ( NKE), Under Armour Inc. ( UAA), National Vision Holdings Inc. ( EYE), PVH Corp. ( PVH), Urban Outfitters Inc. ( URBN), FIGS Inc. ( FIGS), Ralph Lauren Corp. ( RL), Warby Parker Inc. ( WRBY), Floor & Decor Holdings Inc. ( FND), Steven Madden Ltd. ( SHOO), Williams-Sonoma Inc. ( WSM), The Gap Inc. ( GPS), Skechers U.S.A. Inc. ( SKX), YETI Holdings Inc. ( YETI).
Industrial stocks with tariff risk - Companies within the industrial sector ( XLI) with the same exposure to international supply chain and manufacturing footprint.
- Emerson Electric Co. (NYSE: EMR), Ingersoll Rand Inc. ( IR), Kennametal Inc. ( KMT), Flowserve Corp. ( FLS), ITT Inc. ( ITT), 3M Company ( MMM), Graco Inc. ( GGG), Illinois Tool Works Inc. ( ITW), The Timken Co. ( TKR).
Technology with tariff risk - Companies within technology with the same exposures.
- ASE Technology Holding Co. ( ASX), QUALCOMM Inc. ( QCOM), Skyworks Solutions Inc. ( SWKS), NXP Semiconductors N.V. ( NXPI), Qorvo Inc. ( QRVO), Taiwan Semiconductor Manufacturing Co. ( TSM).
Electric vehicles - These could be at risk in 2025 if policymakers extend tax cuts and/or vote against electric vehicle benefits.
- Ford Motor Co. ( F), NIO Inc. ( NIO), Tesla Inc. ( TSLA), General Motors Co. ( GM), Rivian Automotive Inc. ( RIVN), XPeng Inc. ( XPEV), Lear Corp. ( LEA), Gentherm Inc. ( THRM).
Clean energy - A change in IRA benefits could negatively impact spaces within clean electricity, solar, and green industries.
- The AES Corp. ( AES), NextEra Energy Inc. ( NEE), Public Service Enterprise Group Inc. ( PEG), CMS Energy Corp. ( CMS), NextEra Energy Partners LP Common Units ( NEP), Waste Management Inc. ( WM), DTE Energy Co. ( DTE), PG&E Corp. ( PCG), Xcel Energy Inc. ( XEL).
Defense - These companies could be impacted by geopolitical deal-making rather than escalating tensions, said David J. Kostin, chief U.S. equity strategist.
- Booz Allen Hamilton Holding Corp. ( BAH), Leidos Holdings Inc. ( LDOS), RTX Corp. ( RTX), CACI International Inc. ( CACI), L3Harris Technologies ( LHX), Science Applications International Corp. ( SAIC), General Dynamics Corp. ( GD), Lockheed Martin Corp. ( LMT), Teledyne Technologies Inc. ( TDY), Huntington Ingalls Industries Inc. ( HII), Northrop Grumman Corp. ( NOC).
Battery storage - A change to the IRA benefits could also impact the battery storage industry.
- Enphase Energy Inc. ( ENPH), First Solar Inc. ( FSLR), SolarEdge Technologies Inc. ( SEDG), Fluence Energy Inc. ( FLNC), Sunrun Inc. ( RUN).
Carbon credit beneficiary - Timber REITs are currently beneficiaries of carbon credits. A change to the IRA benefits could disrupt that.
- PotlatchDeltic Corp. ( PCH), Rayonier Inc. ( RYN), Weyerhaeuser Co. ( WY)
Green hydrogen - Blue and green hydrogen are also beneficiaries from the IRA’s 45V premium tax credit. A change to the IRA benefits could disrupt that.
- Air Products and Chemicals Inc. ( APD), CF Industries Holdings Inc. ( CF), Linde Plc ( LIN).
Energy efficiency - Energy efficient companies benefit from IRA credits. A change could disrupt that space as well.
- Carrier Global Corp. ( CARR), Johnson Controls International Plc ( JCI), Trane Technologies Plc ( TT).
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