Top stocks to buy with upside in Trump era

Wall Street analysts are looking ahead to President-elect Donald Trump’s return to the White House, and many stocks could be poised to benefit. CNBC Pro combed through the most recent Wall Street research to find companies analysts really like heading into 2025 based on potential Trump policies. They include General Motors, Ford Motor, Robinhood , Coinbase , GE Aerospace and Goldman Sachs. Ford and General Motors Bank of America said both automakers are best positioned in a Trump presidency. “We see F and GM as the main beneficiaries from the Trump administration,” analyst John Murphy wrote. This is because there will be less pressure to shift the auto companies toward electric vehicles, he added. “On the other end, EV OEMs [original equipment manufacturers] may face slower demand due to less pressure to go electric and lower IRA incentives.” Murphy said Mexico tariffs are a risk, but he urged investors to remain calm. Shares of Ford are down 10% in 2024, and General Motors is up close to 55% this year. Coinbase and Robinhood Needham analyst John Todaro sees both stocks as beneficiaries of a crypto renaissance under a Trump administration, although the firm currently has a neutral rating on Robinhood. “We expect the entire crypto sector to benefit from the Trump win, but the largest positive impact on COIN & HOOD,” he wrote. Todaro said both companies may feel more compelled to usher in additional crypto products under a Trump presidency that may be more amenable to bitcoin uses. “In addition to Trump winning, the House and Senate (elected & re-elected) majority pro crypto candidates to make the most pro-crypto political landscape in US history,” he added. Shares of Robinhood are up nearly 140% in 2024, while Coinbase is up more than 55% this year. GE Aerospace The aerospace company has pricing power, according to Deutsche Bank analyst Scott Deuschle, who says GE can benefit under a Trump administration. “In the event that some combination of increased fiscal spending, tax cuts, and tariffs were to drive persistency to the current above-trend rate of inflation, then we think companies in our coverage with the greatest pricing power would continue to stand out as relative winners,” he wrote, including GE in that mix. Defense spending is also likely to rise under a GOP White House, making GE a standout, the analyst added. The company is a key engine supplier on U.S. military aircraft as well as internationally. “Additionally, we think GE could be among the largest beneficiaries of this potential trend within our aerospace coverage,” Deuschle said. The stock is up more than 80% this year with more room to run, he wrote. Ford and GM – Bank of America, buy ratings “We see F and GM as the main beneficiaries from the Trump administration. The current environmental regime would pressure the core business of legacy OEMs (trucks) to decarbonize by the end of the decade while shifting quickly to an EV portfolio. … On the other end, EV OEMs may face slower demand due to less pressure to go electric and lower IRA incentives.” Coinbase – Needham, buy rating; Robinhood – Needham, neutral rating “On the back of this, we expect HOOD in the medium term to launch more crypto products as well as COIN and would expect more favorable outcomes on the SEC cases. In addition to Trump winning, the House and Senate (elected & re-elected) majority pro crypto candidates to make the most pro-crypto political landscape in US history.” GE Aerospace – Deutsche Bank, buy rating “In the event that some combination of increased fiscal spending, tax cuts, & tariffs were to drive persistency to the current above-trend rate of inflation, then we think companies in our coverage with the greatest pricing power would continue to stand out as relative winners. … Additionally, we think GE could be among the largest beneficiaries of this [defense spend] potential trend within our aerospace coverage…” Goldman Sachs – Wells Fargo, overweight rating “Capital markets momentum and the chance for a super cycle. More free markets imply that investment banking revenues have a chance at exceeding 2021 levels over the next few years. The idea of a capital markets super-cycle seems possible (albeit not a base case), esp. given the level of pent-up demand, dry powder, and likely more certainty in deals getting approved. GS should benefit.” Read more about this call here.