The big day is now just 16 days away. On Nov. 3, Americans across the country will head to voting booths to decide what path the U.S. will take over the coming four years. Some of you may have already mailed in your ballots.
For the past few months, Democratic Party presidential nominee Joe Biden has consistently led national and swing state polls over incumbent Republican Donald Trump. Still, if we’ve learned anything about polling (ahem, 2016), it’s that its predictive powers are limited. With one national television debate to go and the coronavirus disease 2019 (COVID-19) pandemic response evolving daily, anything could happen over the remaining weeks.
What’s for certain is that select sectors, industries, and companies will see continued benefits if Donald Trump serves a second term.
If Trump wins on Nov. 3, the following four stocks will become no-brainer buys.
Perhaps the starkest difference between Trump and Biden lies in their respective views of the energy industry’s future. Trump has been adamant in his support for Big Oil, while Biden’s climate proposal would be a big blow to oil stocks. Were Trump to surprise at the polls again and win a second term, integrated oil and gas giant ExxonMobil (NYSE:XOM) would be an intriguing buy.
COVID-19 led to a record drawdown in crude oil demand this year that has absolutely clobbered ExxonMobil. It’s unclear when this demand will recover, which has been problematic for the highly indebted oil industry.
However, ExxonMobil’s size affords it certain advantages that smaller U.S. shale producers lack. For instance, ExxonMobil announced a roughly $10 billion cut to capital expenditures earlier this year to counteract weakness associated with COVID-19. The company is also paying out over $14 billion annually in dividends and could, as a last resort, pare back to conserve capital.
Furthermore, ExxonMobil’s downstream refinery and chemical operations are picking up the slack while upstream drilling margins are depressed. This hedged operating model should help ExxonMobil emerge from this recession as a financially sound company.
If Trump wins a second term, there will be virtually no concern about significant healthcare reforms, at least for drug pricing. That would give investors the green light to buy bargain-priced Irish drug developer Jazz Pharmaceuticals (NASDAQ:JAZZ).
Over the years, Jazz has taken a lot of heat for its pricing practices on blockbuster narcolepsy drug Xyrem. Plenty of brand-name drugs have gone up in price, but Xyrem stands out; data from Bloomberg found that its cost per milliliter jumped by 841% between 2007 and 2014….
Read More: 4 No-Brainer Stocks to Buy if Donald Trump Wins in November