Trump's First 100 Days: Smart Money Is Watching These 3 Stocks
Sunday, Nov 17, 2024 7:50 pm ET
5min read As the dust settles on the U.S. Presidential election, investors are eagerly anticipating the impact of a Trump victory on the stock market. With a focus on defense, strategic industries, and heavy industry, smart money is watching these three stocks as potential winners under Trump's administration.
1. Lockheed Martin (NYSE:LMT)
Trump's spending policies are expected to inject significant momentum into the defense industry, with key manufacturers like Lockheed Martin (LMT) poised to benefit. With a hawkish undertone to defense budgets, LMT's F-35 production and other defense projects could see increased orders, driving revenue growth. LMT is already outperforming peers and enjoying a share of the Pentagon's recent $12-billion budget. A Trump presidency could push LMT's earnings growth further, making it a strong buy.
Geopolitical factors driving demand for Lockheed Martin's products include the Middle East's volatile regional conflicts and the Russia-Ukraine war. Under Trump's administration, these factors are expected to intensify, with a hawkish undertone to defense budget amounts. The Middle East's external actors could escalate conflicts, while the Russia-Ukraine war may expand into other regions. This geopolitical escalation will likely boost demand for Lockheed Martin's F-35 fighter aircraft and other defense products.
2. Military Metals Corp. (CSE:MILI; OTCQB:MILIF)
Antimony's crucial role in defense industries, such as armor-piercing ammunition, infrared sensors, and nuclear weapons, makes Military Metals Corp. (MILI) a strategic investment under Trump's administration. With China's export restrictions driving antimony prices up by over 200%, MILI's acquisition of high-grade antimony and gold projects in Europe and North America positions it to capitalize on this demand. Its assets rank among the top three globally in terms of quality, with antimony ore reaching up to 4% per ton, compared to competitor Perpetua Resources' 0.06%. Trump's hawkish defense policies are expected to boost demand for antimony, making MILI an attractive investment.
Trump's trade policies, particularly tariffs on Chinese imports, will likely impact the global antimony market by disrupting supply chains and driving up prices. This will benefit Western companies like MILI, which is uniquely positioned to supply this critical metal for defense and tech industries. With China restricting exports, antimony prices have surged over 200%, making it a lucrative opportunity for MILI to capitalize on its high-grade assets and strategic acquisitions.
3. CoreCivic (CXW)
Trump's projected return to the White House made many shareholders of publicly traded companies, including CoreCivic (CXW), a lot richer on Wednesday. His victory is expected to usher in sweeping changes from the Biden administration, including a tougher stance on immigration and crime as well as a more hands-off approach to regulating businesses. Shares of CoreCivic, a private prison operator, surged 29% on Wednesday on the expectation that Trump will detain more migrants who cross into the country illegally. This would mark a reversal from the Biden administration, which allowed migrants seeking asylum to legally work in the country while awaiting trial.
In conclusion, investors should keep a close eye on Lockheed Martin, Military Metals Corp., and CoreCivic as potential winners under Trump's administration. With a focus on defense, strategic industries, and heavy industry, these three stocks offer attractive investment opportunities in the coming months. As always, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
1. Lockheed Martin (NYSE:LMT)
Trump's spending policies are expected to inject significant momentum into the defense industry, with key manufacturers like Lockheed Martin (LMT) poised to benefit. With a hawkish undertone to defense budgets, LMT's F-35 production and other defense projects could see increased orders, driving revenue growth. LMT is already outperforming peers and enjoying a share of the Pentagon's recent $12-billion budget. A Trump presidency could push LMT's earnings growth further, making it a strong buy.
Geopolitical factors driving demand for Lockheed Martin's products include the Middle East's volatile regional conflicts and the Russia-Ukraine war. Under Trump's administration, these factors are expected to intensify, with a hawkish undertone to defense budget amounts. The Middle East's external actors could escalate conflicts, while the Russia-Ukraine war may expand into other regions. This geopolitical escalation will likely boost demand for Lockheed Martin's F-35 fighter aircraft and other defense products.
2. Military Metals Corp. (CSE:MILI; OTCQB:MILIF)
Antimony's crucial role in defense industries, such as armor-piercing ammunition, infrared sensors, and nuclear weapons, makes Military Metals Corp. (MILI) a strategic investment under Trump's administration. With China's export restrictions driving antimony prices up by over 200%, MILI's acquisition of high-grade antimony and gold projects in Europe and North America positions it to capitalize on this demand. Its assets rank among the top three globally in terms of quality, with antimony ore reaching up to 4% per ton, compared to competitor Perpetua Resources' 0.06%. Trump's hawkish defense policies are expected to boost demand for antimony, making MILI an attractive investment.
Trump's trade policies, particularly tariffs on Chinese imports, will likely impact the global antimony market by disrupting supply chains and driving up prices. This will benefit Western companies like MILI, which is uniquely positioned to supply this critical metal for defense and tech industries. With China restricting exports, antimony prices have surged over 200%, making it a lucrative opportunity for MILI to capitalize on its high-grade assets and strategic acquisitions.
3. CoreCivic (CXW)
Trump's projected return to the White House made many shareholders of publicly traded companies, including CoreCivic (CXW), a lot richer on Wednesday. His victory is expected to usher in sweeping changes from the Biden administration, including a tougher stance on immigration and crime as well as a more hands-off approach to regulating businesses. Shares of CoreCivic, a private prison operator, surged 29% on Wednesday on the expectation that Trump will detain more migrants who cross into the country illegally. This would mark a reversal from the Biden administration, which allowed migrants seeking asylum to legally work in the country while awaiting trial.
In conclusion, investors should keep a close eye on Lockheed Martin, Military Metals Corp., and CoreCivic as potential winners under Trump's administration. With a focus on defense, strategic industries, and heavy industry, these three stocks offer attractive investment opportunities in the coming months. As always, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.