These stocks are primed for a breakout once Donald Trump takes office in January
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The election of a new president always signals an impending change in many aspects of American life. That’s because every president has policy priorities, especially regarding the economy. Based on his comments during the campaign, it is clear that Trump’s presidency will be very pro-business, meaning there will be some big winners on Wall Street. Read to find out why these stocks could soar during Trump’s second term.
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Donald Trump has made no bones about his commitment to expanding US fossil fuel production. The chant “Drill, baby, drill” is often heard at his rallies and is likely to be a central tenet of his domestic policy. That means energy stocks like Chevron have the potential to pay off big time. Chevron’s shares are currently trading at $156.50, but several analysts believe this stock has major upside through 2025.
Josh Silverstein of UBS is the most bullish on Chevron. He believes the stock is nearly 25% undervalued and recently upgraded his outlook to “strong buy.” He also raised his price target from $192 to $194. RBC Capital’s Biraj Borkhataria’s expectations are slightly more modest, but he has raised his outlook from $170 to $175 and gives Chevron a buy rating.
Chevron shareholders also benefit from passive income. Over the past decade, Chevron has consistently paid dividends. The oil giant currently pays a dividend of 4.17%, which is paid out to shareholders every quarter. If the Trump administration clears the way for more oil drilling, Chevron’s dividend and stock price could rise over the next four years.
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Donald Trump’s immigration policies may not be popular with all Americans, but with his party controlling both houses of Congress, a legislative crackdown on illegal immigration is likely. If Trump’s campaign statements are any indication, there will also be an equally strong crackdown on violent crime. Both developments could benefit GEO Group (GEO).
GEO is a real estate investment trust (REIT) that owns and operates for-profit correctional facilities. One of GEO’s largest customers is U.S. Immigration and Customs Enforcement, which contracts with GEO to manage its immigration processing centers. The US Marshals Service also relies on GEO to operate detention centers. Both agencies are likely to play a major role in Trump’s crackdown on illegal immigration and violent crime.
That means GEO could be poised for rapid expansion, which is part of why analysts at Jones Capital and Wedbush have given the stock a buy rating despite GEO missing its Q3 2024 earnings forecast. GEO stock is currently trading at $25.93, but this stock is not. pay dividends. So investors looking for passive income may want to look elsewhere, but GEO’s stock price could certainly rise under Trump.
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Traditionally, defense companies have done well under Republican administrations, and with the Republican Party looking to keep the nation’s budget under control, it appears this trend is likely to continue. According to US News, Lockheed Martin was also a major donor to the Trump campaign. That typically translates into an increase in contracts and revenues, which benefits Lockheed Martin shareholders.
Lockheed is one of America’s most respected defense companies and its $133 billion market capitalization proves this. Bank of America analysts recently said that a Republican Party-controlled Congress and White House is a “best-case scenario” for this company. Now that this has happened, Lockheed is ready to get even bigger. Unfortunately for value hunters, Lockheed stock trades at $565.94, but it does pay a 2.31% dividend.
Keep in mind that there is never a guarantee that these stocks will rise in 2025. There is always a risk with any investment. That said, Trump’s policy priorities seem to indicate that the stocks mentioned here could deliver big gains for investors.
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Arrivald Home’s Private Credit Fund has historically paid an annualized dividend yield of 8.1%*which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
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This article These Stocks Are Poised for a Breakout Once Donald Trump Takes Office in January originally appeared on Benzinga.com
