Think Donald Trump is going to win? Then maybe you should invest in these stocks.
These 15 investments are closely tied to Donald Trump’s chances of becoming the next U.S. president.
1. The Geo Group (GEO)
Performance since Trump announced on June 16, 2015: -2.11%
The Geo Group is a real estate investment trust that owns and operates private prisons; it has more than 104 facilities in the U.S. and abroad.
Trump's plan to deport 11 million undocumented immigrants in the U.S. would make The Geo Group a great play, since before authorities were able to send people packing, they would first have to put them through a judicial process that would likely entail time in jail -- potentially at a facility run by GEO. The Florida-based company already has a relationship with U.S. Immigration and Customs Enforcement, which accounted for 17.7% of its revenues in 2015.
2. Cemex (CX)
Performance since Trump announced on June 16, 2015: -24.72%
Cemex is a materials company that specializes in cement and concrete. Its products would come in handy for Trump's plans for the U.S.-Mexico border, where he has pledged to build a wall stretching at least 1,000 miles. Trump has also pledged to force Mexico to pay for the wall, and if it were to happen, the country might not mind using a local vendor like San Pedro, Mexico-based Cemex.
3. Exxon Mobil (XOM)
Performance since Trump announced on June 16, 2015: +13.49%
Trump has on numerous occasions on the campaign trail said a key part of his plans to defeat ISIS is by taking its wealth -- specifically, its oil. And he knows exactly who he would give it to. "Take back the oil. Once you go over and take back that oil, they have nothing. You bomb the hell out of them, and then you encircle it, and then you go in. And you let [Exxon Mobil] go in," he told conservative pundit Bill O'Reilly last year.
Any Middle East aggression could drive up oil prices, too, another plus for Exxon.
4. Elbit Systems (ESLT)
Performance since Trump announced on June 16, 2015: +25.68%
Elbit Systems is an Israel-based company that builds defense electronic systems and integrated battle systems for air, sea, land and space.
Trump has largely held that his border wall will be a real wall, made of concrete, rebar and steel, but recently, Trump supporter and former Texas Governor Rick Perry suggested that wall may be "virtual" instead. Elbit Systems has already been enlisted to build a virtual wall at the Arizona border, in 2014 winning a $145 million contract from the Department of Homeland Security.
5. Boeing (BA)
Performance since Trump announced on June 16, 2015: -6.39%
Before Elbit Systems was enlisted to build a virtual fence at the Mexican border with Arizona, Boeing was contracted for a similar virtual project in 2006. The project, known as SBI-Net, was cancelled in 2011 after $1 billion were already spent. Should Trump become president and his wall end up being more virtual than it is real, Boeing could get a second go.
6. Capital One Financial (COF)
Performance since Trump announced on June 16, 2015: -22%
Trump has put forth a detailed plan for financial regulation, but he has said he would likely dismantle Dodd-Frank, or do something close to it. The elimination of it and the Consumer Financial Protection Bureau it created would benefit consumer lenders like Capital One, according to an analysis from S&P Capital IQ.
7. Lockheed Martin (LMT)
Performance since Trump announced on June 16, 2015: +35.78%
The Bethesda, Maryland-based firm was the U.S. government's biggest single contractor in 2015, garnering $36.2 billion in contracts from various agencies, including Defense, Homeland Security and Navy. Trump has pledged to build up the U.S. military and defense spending, which would likely be a boon to Lockheed and other heavy-equipment defense companies.
Lockheed Martin is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells LMT? Learn more now.
8. Northrop Grumman Corporation (NOC)
Performance since Trump announced on June 16, 2015: +39.25%
The Falls Church, Virginia-based company, like Lockheed Martin, would likely benefit under a Trump administration that is military spending-heavy. Northrop Grumman is the third-largest maker of military arms and equipment, with $24 billion in revenues in 2015.
9. Microsoft (MSFT)
Performance since Trump announced on June 16, 2015: +18.41%
Like a number of technology companies, Microsoft holds an enormous amount of money abroad it won't bring back because of U.S. tax rates. According to a recent analysis from Moody's Investors Service, it has more than 90% of its entire $100 billion in cash overseas. As president, Trump has promised to enact a one-time repatriation act of corporate cash held overseas at a discounted rate and reduce the corporate tax rate to 15% - something that would likely please Microsoft and its shareholders.
10. Oracle (ORCL)
Performance since Trump announced on June 16, 2015: -4.87%
Oracle has more than $50 billion in cash holdings, 87% of which are overseas. It would also benefit from a repatriation holiday and reduced corporate tax rate.
11. United States Steel Corporation (X)
Performance since Trump announced on June 16, 2015: -6.55%
In April 2016, U.S. Steel filed a complaint with the International Trade Commission alleging Chinese steel producers conspired to fix prices, steal intellectual property and falsify import labels to avoid tariffs. S&P Capital argues Trump, who has trade reform with China as a major plank of his platform, would help to expand revenues and profits in the industry with his efforts to penalize Chinese imports.
12. Steel Dynamics (STLD)
Performance since Trump announced on June 16, 2015: +31.55%
Steel Dynamics is a steel producing and metal recycling company based in Fort Wayne, Indiana. It and other mini-mill (secondary) steel producers would also see a boost from a tough-on-China Trump.
13. Tetra Tech (TTEK)
Performance since Trump announced on June 16, 2015: +25.43%
Tetra Tech is a provider of environmental engineering and consulting services headquartered in Pasadena, Calif. The company has been contracted to work on border fencing projects by the U.S. Army Corps of Engineers in the past, working on a barrier near San Diego. It might be in the running to continue work.
14. Randgold Resources (GOLD)
Performance since Trump announced on June 16, 2015: +65.84%
Randgold Resources is a gold mining company Saint Hilier, N.J. In the White House, Trump is likely to inject a significant amount of uncertainty and volatility into the markets -- some economists have rated his possible presidency as one of the top global risks. Should he land in the Oval Office, investors may begin flocking to gold and related entities -- some have already indicated that's the case.
15. Bitcoin Investment Trust (GBTC)
Performance since Trump announced on June 16, 2015: +147.42%
The Bitcoin Investment Trust is a publicly-traded vehicle that invests in and derives value from Bitcoin.
Should investors go looking for new opportunities in the event a Trump presidency increases market volatility, virtual currency like Bitcoin could gain steam. The Brexit vote and uncertainties surrounding China have driven such surges in the past, and Juniper Research recently predicted a similar spike could be on the horizon should Trump be elected. Moreover, if Trump shuts down remittances with Mexico -- something he's said he would do in order to force the country to pay for his border wall -- those needing to transfer money across the border could go the Bitcoin route to get around it.
