Watch Out For These Stocks as Trump and Harris Run Neck and Neck in Polls

Multiple polls have shown that Vice President Kamala Harris and GOP presidential candidate Donald Trump are running neck and neck. While Trump has already bagged the nomination from the Republican party and picked former venture capitalist J.D. Vance as his running mate, Harris has yet to formally secure the nomination - though delegates have shown overwhelming support after President Joe Biden withdrew his candidacy, while endorsing her run.

Over the last few weeks, the so-called “Trump trade” was in play as investors loaded up on stocks that they perceived could benefit from a Trump presidency. However, the Trump trade has largely unwound, and “blue stocks” are back in action after Biden's withdrawal. Here are the stocks that could benefit from a Trump or Harris presidency. as well as a few names that could see business as usual after the November election, regardless of who occupies the White House next year.

Trump Stocks to Buy

While the economic policies of Republicans and Democrats diverge across a range of issues, the contrast is particularly stark with Trump and Harris, who arguably lean more to the right and left of center, respectively, than their average party colleagues.

The best stock to buy and bet on a second tenure for Trump could well be the former president’s own Trump Media & Technology Group (DJT). While I otherwise have a pessimistic view of the loss-making enterprise - and doubt the need for a conservative social media platform, with Elon Musk’s X (formerly Twitter) filling the void previously felt by many conservatives - it is the pre-eminent Trump stock to buy. Rumble (RUM), which is another conservative favorite, could also spike if Trump wins in the November elections.

Oil and gas stocks, especially companies like Cheniere Energy (LNG), Schlumberger (SLB), and Halliburton (HAL), could be among the biggest beneficiaries of Trump’s pro-fossil fuel policies. The former president is a climate change denier, and has vowed to end the electric vehicle (EV) “mandate” on the first day of his presidency. He also sees energy exports as a way to bridge the country's ballooning trade deficit. 

Cryptocurrency-Related Stocks Could Benefit from a Trump Presidency

Both Trump and Vance sound pro-cryptocurrency, and companies in the digital asset ecosystem - which includes exchanges like Coinbase (COIN) and miners like Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT) - could see upward traction, assuming Trump follows crypto-friendly policies if elected.

Steel and Aluminum Could Get a Trump Boost

In his first tenure, Trump imposed tariffs on U.S. steel and aluminum imports after the Commerce Department’s findings that these were a threat to “national security.” He has vowed to impose tariffs on all imports into the country if elected again. Given Trump’s tough stance on imports – especially from China – names like Nucor (NUE), Cleveland-Cliffs (CLF), and Alcoa (AA) are good ways to play the “Trump trade.”

I would be a bit skeptical about adding U.S. Steel Corporation (X) to that list, however. Like Biden, even Trump might not give a go-ahead to its acquisition by Japan-based Nippon Steel, which might put CLF in the frontline to acquire the company.

Given Trump’s focus on infrastructure investments, companies like Caterpillar (CAT) are also a good way to bet on a second tenure for the mercurial leader. Likewise, healthcare companies like UnitedHealth Group (UNH) could gain if Trump is elected again in November. 

Kamala Harris Could Double Down on Green Energy

No sector perhaps would fear Trump’s return to the White House more than green energy. In fact, it is one sector where Trump’s policies are diametrically opposed to both Harris and Biden. Harris, incidentally, has sounded even more inclined toward the green energy transition, and could double down on the efforts that Biden took to increase its adoption. 

Given Harris' stance on energy policy, solar and renewable energy stocks like Enphase (ENPH), which have fallen sharply from their highs, could see traction if she is voted into power.

As ironic as it may sound, while Tesla (TSLA) CEO Elon Musk is among the biggest Trump backers, the electric vehicle industry might be a lot better off with Harris in the White House, who during the 2020 campaign talked about an expedited transition to green energy.

In the cannabis space, Harris is also amenable to decriminalization at the federal level. Notably, cannabis stocks had rallied after Biden’s 2020 victory, even as federal legalization has been elusive during his tenure. While cannabis might not feature prominently in Harris’ policies, it’s one industry that would prefer a Democrat occupying the high office.

Harris, who was the former California Attorney General, has links across tech companies and is also perceived to be friendlier towards Big Tech - unlike Trump, who frequently lashed out at these names during his first tenure. It's no wonder that tech companies led the rally on Monday after Biden endorsed Harris.

Also, since Harris is not expected to be as much of a China-basher as Trump, companies like Apple (AAPL) and Nike (NKE), which find themselves caught in the crossfire of U.S.-China tensions, could be plays on a possible Harris presidency.

Look Out for Safe Stocks to Escape Volatility

Meanwhile, if you're looking to play it safe, consumer-facing companies like Walmart (WMT) could fit the bill. Names like Coca-Cola (KO) and Kraft-Heinz (KHC) are also safe bets, and bring good dividend yields to the table, as well.