All posts from Benzinga
Benzinga in Benzinga,

3 Stocks To Own Under President Trump

Put Apple In Your Pocket And These Other 2 Stocks To Prepare For Life Under President Trump|NASDAQ: AAPLNASDAQ: INTCNASDAQ: TSLA

The United States has thrown in the most shocker of an election result, with the Republican candidate Donald Trump coming up trumps against his Democratic rival Hillary Clinton, who was all along expected to pip past Trump by a narrow margin at the very least.

The grossly unexpected results have sent the analyst community into a tizzy, as it analyzes the likely ramification a Trump presidency could have on varied sectors and segments of the economy.

Trip Chowdhry of Global Equities Research has strongly advocated possession of the following three stocks during Trump's presidency:


Apple is expected to ride the wave of exodus out of high PE stocks into low PE ones.

Global Equities Research believes investors will sell high PE stocks and buy low PE stocks. Accordingly, the firm is of the view that Apple, with its very low PE multiple of 7.3 times its 2017 earnings per share estimate of $10.07, after stripping $37.50 net cash per share, would benefit. The S&P 500 Index itself is trading at a much higher PE multiple of 24 times.


Trump's thrust on domestic manufacturing renders Intel attractive.

Under Trump, Chowdhry noted that manufacturing has once again become attractive. Intel has several manufacturing and test sites in the United States, namely D1X, D1C, DID fabs in Hillsboro, Oregon, Fab12, Fab32, Fab42 Fabs in Chandler, Arizona, and ab11X Fab in Rio Rancho, New Mexico.


Tesla's manufacturing-focus places it in good stead.

The firm also said Tesla is another company that could capitalize from domestic manufacturing coming back in favor. The electric car maker has a 5.3-million-square-feet facility in Freemont, California, with another 6-million-square-feet expansion, the total square feet is up at 11.3 million square feet. The firm noted that Tesla has 12,000 factory workers in the facility, with production expected to ramp up to 500,000 autos in 2018, increasing jobs generated to over 20,000.

The company's GigaFactory, a lithium-ion battery factory under construction, has production capacity of 50GW batteries and has a build-out of 13 million square feet. Additionally, the firm noted that the Solar GigaFactory in Buffalo, New York has 1.2-million square foot area, with 1GW of annual capacity.

In Pre-Market Trading ...

  • Shares of Apple were down 0.95 percent at $110.
  • Intel was losing 2.56 percent to $33.85.
  • Tesla was slipping 3.29 percent to $188.53.
Oct 2016Goldman SachsMaintainsBuy
Oct 2016Credit SuisseMaintainsOutperform
Oct 2016PiperJaffrayMaintainsOverweight

© 2016 Benzinga does not provide investment advice. All rights reserved.