By the time you read this, the outcome of the 2024 presidential election may (hopefully) be decided. And there's been no shortage of analysts forecasting which stocks would benefit from a Trump or a Harris presidency.
While it's fashionable to say that the stock market doesn't care who wins a presidential election. That may be true of the broader market. But the fact is that elections have consequences. Historically, the stock market has performed worse in the year after an election than in the election year. Nevertheless, the occupant of the Oval Office has priorities, and those priorities can shape the momentum of certain stocks and sectors.
In this special presentation, we're looking at seven stocks that are likely to perform well in 2025, regardless of who wins the election. That means that whether you're a short-term momentum trader or a long-term investor, these are likely to be solid candidates for your portfolio.
Quick Links
- Chevron
- Meta Platforms
- Palo Alto Networks
- Equinix
- Walmart
- Northrop Grumman
- Exelixis
#1 - Chevron (NYSE:CVX)
Chevron Corp. (NYSE: CVX) has something for every investor. If you’re looking for stocks with growth potential in 2025 and beyond, you’ll want to look for oil stocks. Particularly, you’ll want to look at companies that are involved in exploration and drilling. That’s because, despite oil production being at record levels, much more will be needed to meet the demand needs of an electrified future (e.g. data centers).
Plus, Chevron is making purposeful investments in a renewable energy future. These initiatives currently include managing methane emissions, carbon capture and storage projects, and helping to promote renewable fuels.
CVX stock is up 1.1% in 2024, which is far below that of Exxon Mobil Corp. (NYSE: XOM), which is up 19.1%. Still, analysts believe the stock has 15% upside potential, particularly now that its merger with Hess Corp. (NYSE: HES) has received approval by the U.S. Federal Trade Commission (FTC).
And if you’re looking for a combination of growth and income, don’t forget that Chevron is a dividend aristocrat that has increased its dividend for 37 consecutive years. That dividend comes with an attractive 4.35% yield.
About Chevron
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant.
Read More - Current Price
- $142.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $175.19 (22.6% Upside)
#2 - Meta Platforms (NASDAQ:META)
Meta Platforms Inc. (NASDAQ: META) has been one of the hottest momentum stocks over the last two years. With META stock up 62% in 2024 and up 93% in the last 12 months, some investors may be concerned a correction is inevitable. However, the company has several catalysts in place that should give investors reason to believe that it can keep that momentum going.
At the core of the bullish thesis is Meta’s AI-enabled tools that are driving improvements in users, ad display, and revenue-per-ad metrics. This has provided double-digit growth in 2024, which analysts expect to last into 2025. Plus, the company is using AI to develop its own search engine to provide conversational answers to current events for users using the company’s chatbot, Meta AI.
As of October 28, 2024, analysts give Meta Platforms a consensus price target of $621.63. However, heading into the company’s earnings report on October 30, analysts have been raising their price targets. That trend will increase if the company posts bullish earnings.
About Meta Platforms
Meta Platforms, Inc engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.
Read More - Current Price
- $585.25
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 37 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $638.00 (9.0% Upside)
#3 - Palo Alto Networks (NASDAQ:PANW)
Cybersecurity will be one of the most important sectors for investors in coming years. Palo Alto Networks Inc. (NASDAQ: PANW) is another stock that has had bullish momentum in the last two years. PANW stock is up 24% in 2024 and 53% in the last 12 months.
A key catalyst for 2025 and beyond is the growth of artificial intelligence and the push-pull it creates between revenue growth and cybersecurity. The fact is that the growth in artificial intelligence will make demand for cybersecurity greater, not less.
Palo Alto Networks has continued to grow revenue and earnings in 2024 despite a move to platformization in which the company allows customers to use some of their offerings for free. However, the company continues to increase its market share including with its flagship Next-Generation Firewall (NGFW).
The consensus price target of $376.82 on October 28 suggests little upside. However, analysts are raising their price targets ahead of the company’s earnings report in November.
About Palo Alto Networks
Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.
Read More - Current Price
- $186.78
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 32 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $201.40 (7.8% Upside)
#4 - Equinix (NASDAQ:EQIX)
Demand for artificial intelligence applications is fueling the need for more data centers. That’s the bullish thesis for owning Equinix (NASDAQ: EQIX). The company owns and operates over 260 data centers in over 30 countries and six continents. It’s important to understand that Equinix benefits from the need for data centers through a diverse customer base that spans financial services, health care, manufacturing firms, online retailers and banks.
However, the catalyst heading into 2025 is the company’s joint venture that will allow the company to expand into the hyperscale space, an area where the company has been absent. This will increase the top line which is already growing impressively. However, it’s also likely to give earnings a boost which, while growing impressively, have not grown as impressively as analysts have forecasted.
That deal is one reason that analysts have been raising their price targets for EQIX stock prior to the company’s earnings report on October 30, 2024.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
- Current Price
- $927.22
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $976.81 (5.3% Upside)
#5 - Walmart (NYSE:WMT)
Moving outside the technology sector, investors have many reasons to believe Walmart Inc. (NYSE: WMT) can continue to be a top stock to own. In a year that has been challenging for retail and consumer staples stocks, WMT stock has delivered an impressive 57% gain. That comes after the company issued a 3-for-1 stock split in January.
Despite what were expected to be tough comparisons to 2023, Walmart has continued to increase revenue and earnings on a year-over-year basis. Analysts will point to a resilient consumer. However, a key finding in recent earnings reports is how Walmart is capturing market share of consumers who may not have previously shopped at Walmart. Plus, through its Walmart+ service, the company is growing its digital presence. In fact, in the second quarter of 2024, e-commerce sales were up 21%.
In a common theme with the stocks on this list, Walmart stock is currently trading near its consensus price of $83.83. However, analysts are raising their price targets ahead of the company’s earnings report in November. Plus, despite a yield of just 1%, Walmart is a dividend king with 52 consecutive years of dividend increases.
About Walmart
Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.
Read More - Current Price
- $92.24
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 29 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $93.69 (1.6% Upside)
#6 - Northrop Grumman (NYSE:NOC)
Northrop Grumman Corp. (NYSE: NOC) is one of the leading names in the defense sector. Although thought of as a cyclical sector, global defense spending continues to increase due to the war between Russia and Ukraine and the current conflict in the Middle East.
Despite anything that a particular candidate may say, geopolitical concerns are likely to be a tailwind for all defense stocks in 2025 and beyond. To begin with, defense stocks usually perform well when the Federal Reserve is cutting interest rates. Second, despite the current geopolitical situation, the defense budget as a percentage of the economy remains small on a percentage basis.
In its October earnings report, the company beat on earnings but slightly missed on the top line. Nevertheless, it raised its guidance for the full year and announced efforts to increase margins in 2025.
NOC stock is up 9.7% in 2024. The company is also a solid dividend stock with 21 consecutive years of dividend increases.
About Northrop Grumman
Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.
Read More - Current Price
- $469.54
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $553.27 (17.8% Upside)
#7 - Exelixis (NASDAQ:EXEL)
It’s been a good year for biotechnology stocks. However, one stock that may not get enough attention is Exelixis Inc. (NASDAQ: EXEL). But if you’re unfamiliar with this mid-cap stock, now may be a good time to see what you’re missing.
The company is an oncology-focused biotech company that has two commercially available products. CABOMETYX is an oral tablet for advanced renal cell carcinoma post-anti-angiogenic therapy. COMETRIQ is an oral tablet used to treat progressive and metastatic medullary thyroid cancer. The company will be protected from patent expiration until 2030. And during that time, it’s likely to bring one of the four candidates that are in Phase 3 clinical trials to market. And the company’s pipeline goes deeper than that.
The Biden administration has made finding a cure for cancer an imperative of the U.S. government. That focus is likely to continue no matter who occupies the Oval Office. Analysts are bidding EXEL stock higher before it reports earnings in late October.
About Exelixis
Exelixis, Inc, an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. The company offers CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of progressive and metastatic medullary thyroid cancer.
Read More - Current Price
- $33.29
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $32.44 (2.6% Downside)
Election years bring uncertainty and investors hate uncertainty. As it relates to the presidential election, the known is always better than the unknown. That's why market volatility tends to recede in the two months following the presidential election. Once investors know who will occupy the White House and equally important which party will control the House and Senate, investors can start to forecast public and monetary policy.
Not surprisingly, investors would prefer gridlock. Gridlock is a state where different political parties rule the executive and legislative branches. It makes it harder to get things done, which is frustrating for many Americans but music to the ears of private-sector companies.
What will 2024 bring? We don't know, but we know that there will be opportunities for investors who are willing to take what the market gives them. The seven stocks in this presentation are all expected to outperform the market in 2025 and, in many cases, have catalysts for years to come.
More Investing Slideshows:
