After recent win in South Carolina Republican presidential against Nikki Haley, Mr. Donald Trump’s odds seem promising for rematch against President Biden when November 2024 US Presidential elections kick in. Therefore, several analysts are focusing on stocks which might increase if Donald Trump wins the US election this time. While presidential elections are always uncertain, it will be good if analysts and investors have a strategy to focus on.
Thus, current market buzz is how stocks will react to Donald Trump’s arrival again in White House?
While several research material remains available related to behaviour and expected performance of financial markets and stocks which focus on the impact of elections on stock markets, more are more analysts are giving their respective opinions regarding 2025 and beyond will look like for stock market in case new government gets formed under Mr. Donald Trump.
While Mr. Trump has warned investors that the stock market will crash unless voters return him to White House, most of the analysts and strategists have completely ignored his warning.
In fact most of the investors and analysts say that there will not be a robust sell-off even if Mr. Trump loses. Irrespective of the fact of who wins, the market might see a rally simply because the investors will be relieved that its over!
Stocks which might increase if Donald Trump wins the US election this time are the ones belonging to the small-cap category which perform under Dovish economic policies. This is because Mr. Trump is a strong supporter of lower interest rates and less regulatory procedures.
With this in mind, let us now have a look at stocks which might increase if Donald Trump wins the US election this time!
1. Digital World Acquisition Corp
It is a blank check company which has been formed for purposes of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, etc.
It’s activities from inception to September 30, 2023 are organizational activities and the ones mandatory to prepare for IPO and look out for targets for initial business combination, which includes proposed Merger with TMTG.
For 3 months ended September 30, 2023, it saw a net loss of $12,192,367, consisting general and administrative costs of $4,057,852, legal investigations costs of $11,639,030 and income tax expense of $899,687. These expenses were partially offset by $3,599,760 of interest which was earned on cash held with Trust Account and insurance recoveries of $1,046,653.
The legal investigations expense consists of $10 million associated to SEC settlement of $18 million.
For the 9 months ended September 30, 2023, net rise in cash was $3,284,598 and this was made up of net cash used in operating activities of $1,702,985, net cash provided by investing activities and financing activities of $1,448,055.
Digital World Acquisition Corp along with other Trump-related digital properties and companies are expected to see strong boost if Mr. Trump takes up the power post November 2024 elections.
2. BRC Inc.
The company is a Veteran-founded coffee company which serves premium coffee. Products of the company consist of Dark Roast Bundle, New Roast Bundle, Perfect Pair Bundle, etc.
It has announced its financial results for 3Q of fiscal year 2023, with net revenues increasing ~33% in 3Q23 to reach $100.5 million. Gross profit of the company went up by 42% and wholesale growth was 91% year-over-year.
The Black Rifle Coffee Company brand continues to be stronger and dramatic swing towards being a profitable company is noteworthy. A new era for BRCC has started where the company has self-sustaining business model leading revenue, profit and shareholder returns.
Rigorous focus on operational excellence continues to take hold at the company and the team continues to support business through renewed focus on profitability.
Gross profit of the company went up to $34.1 million in 3Q23 from $23.9 million in 3Q22, exhibiting a rise of 42.2% year to year, with gross margin rising 220 basis points to touch 33.9% from 31.7% for 3Q22. This was seen due to increased sales volume and favorable product mix shift, because coffee and rounds sold to FDM customers have increased gross margin against other channels.
In some other news, Director Glenn W. Welling decided to buy 200,000 shares of the stock through a transaction which took place on Monday, December 11th. Shares were purchased at an average cost of $3.85 per share, resulting in a total value of $770,000.00.
Post the acquisition, the director owns 12,851,018 shares in the company, worth $49,476,419.30.
3. Fluor Corporation
The company has been categorised as one of the leading global providers of engineering, procurement, construction, fabrication, operations, and maintenance services.
It announced financial results for year ended December 31, 2023, with revenues for FY23 coming at $15.5 billion and net income attributable reaching $139 million, or $0.54 per diluted share. Consolidated segment profit for the year came in at $537 million in comparison to $427 million in 2022.
It has recognized adjusted EBITDA of $613 million and adjusted diluted EPS of $2.73 for 2023. Ending backlog for FY23 came in at $29.4 billion in comparison to $26.0 billion in the prior year.
The company is being well served by priorities which were set in 2021. On the basis of volume of new awards received over previous 2 years, early achievement of 75% reimbursable backlog target, and the company’s strong and diverse prospect pipeline, it continues to establish an adjusted EBITDA guidance for 2024 of $600 – $700 million and adjusted EPS of $2.50 – $3.00 per share.
Conclusion
While are some of the stocks which might increase if Donald Trump wins the US election this time, there are several other names which might benefit Mr. Trump comes to power in November 2024 Presidential elections.
In late January, Russell 2000 index saw a significant increase as experts had their opinions that Mr. Trump might win the US Presidential elections. Russell 2000 is small-cap US stock market index which constitutes smallest 2,000 stocks in Russell 3000 Index.
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