While former President Donald Trump appeared to have a convincing lead in November’s election, President Joe Biden’s departure has made the race competitive. Kamala Harris as the Democratic nominee is now tipping the polls one way or the other.

Still, Trump, with her convention bounce gone, could rebuild a lead that would carry him to the White House. A Republican victory would allow for new economic priorities that would set a different course for the country.

While the chances of a red wave across Washington have diminished, a change in government power, coupled with a conservative majority on the Supreme Court, would bring certain sectors to the forefront.

The following three stocks have the best chance of improving their prospects and seeing strong share price gains under President Trump.

Key points about this article:

• The presidential race has heated up, but a tsunami among Republicans is still possible.
• With Donald Trump back in the White House, there are clear stock favorites among the Republican administration.
• If you’re looking to pick up some of the stocks with the greatest potential, regardless of who wins, check out our brand-new report, “The Next NVIDIA,” which breaks down the next megatrends in AI and the companies we believe can dominate them.

Lockheed Martin (LMT)

Lockheed-Martin Joint Strike Fighter Jet

One of the cornerstones of Trump’s campaign is rebuilding the U.S. military. As the largest defense contractor, Lockheed Martin (NYSE:LMT) could benefit most from renewed defense spending.

Sales to foreign governments were likely to decline as Trump halted sales of additional war materiel to Ukraine and adopted a more America-first defense posture. While a whopping 26% of Lockheed’s 2023 revenue came from sales to foreign governmentswould that number not drop to zero. And any reduction would undoubtedly be offset by higher domestic spending.

After trading largely sideways for a year, LMT stock rallied after reporting second-quarter earnings. The government also began accepting deliveries of Lockheed’s key F-35 fighter jet after a yearlong delay. With aerospace accounting for 40% of revenue, this is a big boost to the business. Look to missiles and fire control, which offer Lockheed the best profit margins, to continue its growth trajectory.

A Trump presidency would further increase Lockheed-Martin’s profits.

ExxonMobil (XOM)

Exxon gas station sign

Similarly, expect an integrated oil and gas giant ExxonMobil (NYSE:XOM) to profit from a second Trump term. As it focuses on its domestic assets, particularly in the Permian Basin, the oil stock would seize the opportunity offered by Trump’s plan to “unleash the production of domestic energy sources.”

Exxon became the largest producer in the Permian when it completed its acquisition of Pioneer Natural Resources earlier this year. The merger added Pioneer’s 850,000 net acreage to its own 570,000 net acreage. It helped Exxon post some of its best profits ever, or $9.2 billion in revenue. Combined, Exxon is now a regional powerhouse that aims to increase oil and gas production by 50 percent by 2027.

Also oil-rich Guyana Exxon achieved record productionwith total upstream net production increasing by 574,000 oil-equivalent barrels per day in the second quarter. It earned $12.7 billion from its upstream operations in the first six months of 2024. Expect those profits to grow further under a Republican administration.

Axon Enterprise (AXON)

Police officer speaks to motorist

Law and order are also essential to Trump’s platform. Axon Company (NASDAQ:AXON) would benefit most from a Trump victory as a major supplier of less-lethal weapons and body cameras for police.

Things are already looking good. Taser sales in the second quarter were up 28% year-over-year to more than $196 million, while body camera sales were also up 28%. With both the public and law enforcement demanding greater accountability and protection, demand is rising for Axon’s full line of products. Total sales were up 35% year-over-year, allowing Axon to raise its full-year guidance.

The third leg of Axon’s triad is its evidence database management system. Axon Evidence is cloud-connected to both the Taser and the cameras and sensors, making the total package very sticky for its end customers. Axon serves 20,000 agencies in all 50 states and 90 countries worldwide.

Axon Enterprise is one company that, regardless of who becomes president, will benefit the most if a candidate committed to tackling crime wins.

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