Top stock picks to consider if Trump or Harris wins the White House – SA’s Steven Cress

The dead-heat presidential race between Vice President Kamala Harris and former President Donald Trump will end next week, and Seeking Alpha’s Vice President of Quant Strategy Steve Cress outlined three stocks to consider if Harris is victorious and another three if Trump is re-elected.

Cress used a quantitative approach in looking for stocks that would benefit from agendas set forth by Harris and Trump, along with their public-service track records. He also identified sectors likely to perform well under each administration.

“I will highlight whether you have Trump or Harris [as the White House winner], these stocks have great fundamentals, and they’re positioned to do quite well probably if either candidate wins,” Cress said during Seeking Alpha’s 2024 virtual Election Forum on Wednesday.

Harris stocks and sectors

Sectors: Information Technology, Alternative Energy, Industrials

Zeta Global Holdings (NYSE:ZETA) – SA Quant Rating: 4.95

The cloud-based marketing technology platform leverages proprietary AI, a play in the Information Technology sector that should perform well under Harris. Cress highlighted the company having 10 consecutive quarters of revenue greater than 20%.

IT should perform well under Harris, whose Senate record shows a balanced stance on tech regulation and growth, Cress found. Also, the California politician and the state’s former attorney general has landed endorsements from a number of tech-industry leaders, underscoring her regional ties.

First Solar (NASDAQ:FSLR) – SA Quant Rating: 3.83

First Solar is the largest solar panel maker headquartered in the U.S. The company demonstrated 29% revenue growth for its forward estimates, a 360% premium to the Alternative Energy sector, Cress said.

Under Alternative Energy, Harris has backed tax credits for energy-saving products such as rooftop solar panels and heat pumps. If president, Harris would oversee implementation of clean-energy initiatives under the Biden-Harris Administration’s Inflation Reduction Act.

Powell Industries (NASDAQ:POWL) – SA Quant Rating: 4.98

The maker of circuit breakers and other electrical equipment has a “huge backlog” and a 34% return on equity, Cress said. It’s part of the Industrials sector, and Harris supported providing $30B for electric grid infrastructure under the Bipartisan Infrastructure Law.

Trump stocks and sectors

Sectors: Aerospace and defense, financials, construction and engineering

Northrop Grumman (NYSE:NOC) – SA Quant Rating: 4.73

The defense industry stalwart’s valuation is “a little bit rich” but it’s “deep in the green” for other SA Factor Grades including profitability and growth, Cress said.

Trump’s policies favor increased spending on defense and modernizing the military. Cress noted defense procurement rose nearly 25% between 2017-2020 under the Trump administration compared with the Obama administration.

First Citizens BancShares (NASDAQ:FCNCA) – SA Quant Rating: 3.06

The company made an “excellent purchase” of Silicon Valley Bank in March 2023 after the latter lender collapsed, positioning First Citizens to take up SVB’s involvement in private equity and technology in California, Cress said. He highlighted First Citizen’s 29% forward revenue growth, a ~427% premium to the sector.

The Financials sector should benefit under Trump, whose administration rolled back related regulatory provisions. Trump also plans to extend tax cuts and lower corporate tax rates.

Argan (NYSE:AGX) – SA Quant Rating: 4.97

The company builds solar facilities, gas-fired power plants and sells industrial construction and other services. Cress highlighted the company’s upward trajectory in SA’s Growth Factor grade over the past six months, and said with an A+ Momentum grade, Argan was “crushing it” relative to the rest of the sector.

In terms of the construction and engineering sector, Trump is aiming to charter 10 new cities on underdeveloped federal land and streamline approval for infrastructure projects.

For investors looking to track the elections through market instruments, here are some politically driven Republican and Democratic exchange-traded funds:

God Bless America ETF (YALL)

American Conservative Values ETF (ACVF)

Point Bridge America First ETF (MAGA)

Democratic Large Cap Core ETF (DEMZ)

Unusual Whales Subversive Democratic ETF (NANC)

Unusual Whales Subversive Republican ETF (KRUZ)

Readers interested in investing topics tied to the upcoming election can read coverage from Seeking Alpha’s Investing Forum: Election 2024 event; please visit this page.

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• SA Asks: Which tech stocks could rise or fall on a Harris win?
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• Bill Ackman says Pershing not placing bets on U.S. presidential race outcome
• Election scenarios by UBS: Blue Sweep, Red Sweep, split Congress for Harris or Trump