• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Wells Fargo offers up its industrials election playbook

by October 26, 2024
written by October 26, 2024

Investing.com – The US presidential election is drawing closer, and Wells Fargo has taken a look at the Industrials sector, identifying the potential relative winners and stocks that are at relative risk.

Across the Industrials sector, the key election points center around tax policy, trade/tariffs and regulation, according to the US bank. 

“Broadly speaking a Trump victory would be viewed constructively, but with significant nuance within individual sub-sectors,” analysts at Wells Fargo said, in a note dated Oct. 21, although polls suggest a close race.

Transport: Transport companies appear more favorably positioned in a Trump victory, as Trump’s policies could drive greater industrial and broader economic growth, Wells Fargo said. Tariffs and trade policy are larger headline risks, but we see Trump reward outweighing the risk. 

“We believe a Harris victory preserves the status quo and in that context would prefer companies with more idiosyncratic stories such as NS, XPO or CN,” the bank added.

Autos: “We see the election as a lose-lose for automakers,” Wells Fargo said.

There are 5 policies in play 1) fuel regulations, 2) tariffs, 3) corporation tax, 4) Inflation Reduction Act (IRA) & 5) auto interest deductions. A Trump win likely means easing of fuel regs; however, it likely takes until ~2028 to reverse EPA rules & IRA could be cut in the interim. Also, Trump tariffs would increase costs. A Harris win implies fuel economic burdens stay & taxes rise. Neither signal relief for autos.

Aerospace & Defence: We doubt the election meaningfully shifts defense spending trends, said Wells Fargo, but a Trump win could drive negative headlines around less support for Ukraine. 

Harris could bring further regulatory pressure around business jets similar to Biden, whereas bonus depreciation was extended in Trump’s first term. 

EEMI: Crosscurrents on positioning influences tied to perceived advantages and disadvantages of each election outcome cloud clear-cut conclusions. We think most intriguing is actually just getting past election uncertainty overhang, which could unlock orders and benefit short-cycle industrial. 

In broad strokes, we think a Trump victory is best for earlier-cycle, conversely, Harris appears better for thematic/secular exposure in electrical & heating, ventilation and air conditioning.

 

 

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Five global scenarios that could shape Chinese markets in 2025 and 2026
next post
G7 leaders agree to deliver $50 billion in loans to Ukraine as soon as December

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Meta’s revised paid ad-free service may breach EU privacy laws, consumer group says
    • SpaceX’s Starship to deploy mock satellites in next test

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy