In 24 days, millions of Americans will go to the polls. Many others have already started early voting.
DecisionDesk HQ predicts that former President Donald Trump has a 48% chance of returning to the Oval Office for a second term. Under this model, Republicans have a 71% chance of winning the Senate and a 54% chance of retaining control of the House of Representatives.
While these are just estimates that could turn out to be wrong, there is a real possibility that the Republican Party will hold the presidency and both chambers of Congress in 2025. Here are three no-brainer stocks to buy as Trump and the Republicans battle it out in November.
1. ExxonMobil
Trump wants the US to have ‘energy dominance’. He wants to expand oil and gas drilling on federal lands. He opposes several renewable energy initiatives that would reduce the country’s dependence on fossil fuels. Participants at his political rallies will often hear him proclaim, “Drill, baby, drill.”
It is uncertain exactly how much Trump’s policies would benefit the oil and gas industry. However, perception can become reality. And the perception is that a second Trump administration will almost certainly be very beneficial to oil companies. As the largest U.S. oil producer by market capitalization, ExxonMobil (NYSE:XOM) will be a big winner if the former president becomes the next president.
ExxonMobil is already doing well. The company recently posted its second-highest second-quarter profit in the past decade. ExxonMobil’s acquisition of Pioneer Natural Resources has significantly increased its upstream production capabilities.
The stock could be a big winner in the long term, regardless of which political party is in power. ExxonMobil is investing heavily in carbon capture and storage (CCS) technology. Thanks to the acquisition of Denbury in 2023, the company owns the largest CO2 pipeline network in the US. If ExxonMobil’s CCS bet pays off, the oil producer will continue drilling for decades to come.
2. Coinbase Worldwide
Trump has been skeptical about cryptocurrency in the past. He isn’t now. In July, he told the audience at a major cryptocurrency conference that he wants the US to become the “crypto capital of the planet.” The former president has committed to implementing several cryptocurrency-friendly policies. Republicans have even included language in their official party platform promising to defend Americans’ right to their digital assets.
For these reasons, another Trump term might be music to your ears Coinbase worldwide (NASDAQ: MINT) shareholders. The company operates one of the world’s largest cryptocurrency exchanges. In the quarter ending June 30, 2024, approximately $226 billion was traded through Coinbase.
Coinbase has been a very volatile stock since going public in 2021, as evidenced by its super high beta coefficient of 3.35. The huge swings in the stock price are partly due to the volatility of the cryptocurrency market itself, mainly due to the failure of several top crypto platforms.
However, a presidential administration that actively supports cryptocurrency could create a more stable environment in which Coinbase could flourish. Wall Street already thinks the stock should be a big winner even before the election results are known. The 12-month average price target for Coinbase reflects an upside potential of 53%.
3. Costco Wholesale
Presidential policies can have both positive and negative consequences. Many economists have roundly criticized Trump’s proposed tariffs on all imported products. The Peterson Institute for International Economics, for example, estimates that these rates could cause inflation to rise as much as 7.4% above base levels by 2026.
Higher inflation would hurt many companies. But it might help Costco Wholesale (NASDAQ: COST). The company’s membership warehouses and e-commerce websites offer low prices on a wide range of products. When Americans pinch their pennies, they shop more at Costco.
However, Costco doesn’t need inflation to deliver strong results. The company has continued to grow regardless of the macroeconomic environment.
The biggest knock against Costco is its valuation. The shares trade at a forward earnings multiple of 49.5. But this premium price underlines how much investors appreciate Costco’s resilient business model. This stock will likely reward shareholders regardless of who occupies the White House and controls Congress next year.
Don’t miss this second chance at a potentially lucrative opportunity
Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.
On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Amazon: If you had invested $1,000 when we doubled in 2010, you would have $21,022!*
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Apple: If you had invested $1,000 when we doubled in 2008, you would have $43,329!*
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Netflix: If you had invested $1,000 when we doubled in 2004, you would have $393,839!*
We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns October 7, 2024
Keith Speights has positions in ExxonMobil. The Motley Fool holds and recommends positions in Coinbase Global and Costco Wholesale. The Motley Fool has a disclosure policy.
3 No-Brainer Stocks to Buy as Donald Trump and the Republicans Battle in November Originally published by The Motley Fool
