BMO Capital Markets recently released its 2024 election guide, analyzing how different sectors of the stock market may be impacted depending on the outcome of the White House race. The firm focused on factors such as tariffs, regulation, immigration, taxation, and socially conscious business frameworks. While they are not predicting the election outcome, BMO shared their insights on potential policy implications.
CNBC Pro compiled a list of stocks that BMO believes could benefit regardless of whether Kamala Harris or Donald Trump wins the presidency:
Kamala Harris Victory:
If Kamala Harris wins, Brookfield Renewable is expected to be a winner due to her support for renewable energy. Despite underperforming the broader market this year with an 8% gain, analysts are bullish on the stock. The majority of analysts have a buy rating, with a price target suggesting potential for a more than 6% increase.
Another potential winner under a Harris victory is Dollar Tree, which could see a “relief rally.” Despite a more than 50% drop in shares this year, Wall Street anticipates a rebound. Analysts’ average price target indicates a possible increase of over 25%, although most analysts currently have a hold rating on the stock.
Donald Trump Victory:
If Donald Trump secures a second term, Dow and other U.S. commodity producers could see a boost. Dow has experienced a more than 5% decline in 2024, ranking as one of the worst performers in the Dow Jones Industrial Average. Analysts foresee a potential upside of over 10%, but the majority currently maintain a hold rating.
Adtalem Global is another stock that may benefit under a Trump administration, as relaxed regulations could support for-profit education. The health-care education stock has surged more than 22% this year, with all three analysts covering the stock rating it as a buy. The average price target suggests a potential increase of more than 20% over the next year.