Stocks to Watch with a Trump President

12.07.2016 · Posted in Uncategorized

 

By: Nick Landano

With new president elect Donald Trump waiting to be put into office, there are a few stocks that should be watched once he starts to make good on his promises on immigration. Though globalization may be on hold for years to come, internal improvement is destined in the near future.

Laying down the hammer on illegal immigration was one of Trump’s major pillars in his campaign. Though it is seen as being a major cost to the U.S. economy, certain companies would benefit greatly. The GEO Group ($GEO) is a private prison real estate investment trust that has strong ties with the federal government and the U.S. Immigration and Customs Enforcement (ICE). Trump’s immigration plan is set to deport 11 million undocumented immigrants, but before they leave the country, they will need to go through judicial process and spend time in jail. GEO would benefit directly through this mass deportation.

Cemex ($CX) would be another company to benefit at large by Trump’s immigration views. Trump plans to build a 1,000-mile wall along the U.S. and Mexico border. Of the $14.1 billion in net sales during 2015, $2.8 billion of it came from Mexico. If his plans were to pass, Mexico would likely source local materials from the San Pedro-based Cemex and that would lead to a large pay day for the firm. Whether his plan is practical or will be executed, it would lead to large financial gains in major infrastructure companies such as Cemex.

A Trump president shows promise for national infrastructure, but many believe his ideas would be hard to execute. The stocks mentioned would be some of the major gainers if any of his large-scale plans are put to action. As for general areas of growth, looking towards banks and on-shore manufacturers would also be a strong play.

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