This article presents an overview of the 5 Best Stocks to Buy Before US Election Season 2024. For a detailed overview of such stocks, read our article 10 Best Stocks to Buy Before US Election Season 2024.
5. Bristol-Myers Squibb Co (NYSE:BMY)
Number of Hedge Fund Investors: 60
Bristol-Myers Squibb Co (NYSE:BMY) is one of the best stocks to buy before US election 2024. Healthcare stocks often fall out of favor during election years. But that’s an opportunity for contrarian investors looking for value. According to a Reuters report, Patrick Kaser, a portfolio manager at Brandywine Global, said he’s Overweight Bristol-Myers Squibb Co (NYSE:BMY) along with a few other healthcare stocks since he believes these stocks are undervalued.
As of the end of the fourth quarter of 2023, 60 hedge funds tracked by Insider Monkey had stakes in Bristol-Myers Squibb Co (NYSE:BMY). The most significant stake in Bristol-Myers Squibb Co (NYSE:BMY) is owned by John Overdeck and David Siegel’s Two Sigma Advisors which owns a $457 million stake in Bristol-Myers Squibb Co (NYSE:BMY).
Madison Sustainable Equity Fund made the following comment about Bristol-Myers Squibb Company (NYSE:BMY) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb Company (NYSE:BMY) and The Walt Disney Company. We added Texas Instruments as a new position. Bristol-Myers has been dealing with the loss of exclusivity for Revlimid, one of its key products. Although the company is launching new drugs in melanoma, heart failure, and psoriasis it will need additional products to offset the lower revenue in Revlimid.”
4. Chevron Corp (NYSE:CVX)
Number of Hedge Fund Investors: 71
The energy sector has been a clear winner in the past in every election year in the US. Goldman Sachs published a report recently in which it mentioned a few stocks poised to grow if the Republicans win this election. Chevron Corp (NYSE:CVX) was part of the list as Goldman said the energy sector gains under the commodities production policies of the Republicans.
Goldman also said under the Trump administration the US approved Keystone XL and Dakota Access pipelines, which was a positive for energy stocks like Chevron.
The London Company Large Cap Strategy stated the following regarding Chevron Corporation (NYSE:CVX) in its fourth quarter 2023 investor letter:
“Chevron Corporation (NYSE:CVX) – CVX underperformed during 4Q as oil prices fell, 3Q results missed expectations, and CVX negatively adjusted 2024-2025 cash flow guidance for its key asset in Kazakhstan. It is also notable that CVX announced a deal to acquire Hess Corp in a stock-for-stock transaction. While we generally do not maintain a high degree of exposure to pure commodity businesses, we continue to view CVX favorably for its conservative balance sheet, focus on returns, and commitment to the dividend.”
3. Pfizer Inc (NYSE:PFE)
Number of Hedge Fund Investors: 79
Pfizer Inc (NYSE:PFE) could be one of the best stocks to buy before US election 2024. Long-term investors believe the healthcare sector is undervalued as historically healthcare sectors have underperformed during election years but tend to grow later. A Reuters report in January said that the healthcare sector traded 17.9 times forward earnings estimates versus a P/E ratio of 19.7 for the S&P 500. The report quoted Art Hogan, chief market strategist at B. Riley Wealth, who said:
“Investors are starting to look out for those sectors that didn’t work in 2023, and healthcare fits that bill.”
The analyst has an Overweight rating on the healthcare sector.
Earlier in February, Jefferies named a few stocks it believes could gain amid the rise of weight loss drugs. Pfizer Inc (NYSE:PFE) was part of the list.
Over a decade of consistent dividend increases also make Pfizer Inc (NYSE:PFE) an attractive income stock to buy and hold.
Smead Value Fund made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2023 investor letter:
“Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).
On the downside, Target (TGT), Bank of America (BAC) and Pfizer Inc. (NYSE:PFE) detracted the most in the first nine months of the year. Pfizer (PFE) is suffering from a fall-off in Covid-19 vaccinations and we are trying to figure out what to do with it as a small holding.”
2. Exxon Mobil Corp (NYSE:XOM)
Number of Hedge Fund Investors: 85
An analysis by Comerica Bank says energy stocks have performed well during all election years since 1973. Last month, Goldman Sachs published a report which mentioned several stocks that can grow should the Republicans win the upcoming election. Goldman Sachs added Exxon Mobil Corp (NYSE:XOM) to this list of stocks.
With years of dividend increases and a huge dominance in the oil and gas industry, Exxon Mobil Corp (NYSE:XOM) is one of the safest energy stocks to own ahead of the US Presidential election 2024.
1. JPMorgan Chase & Co (NYSE:JPM)
Number of Hedge Fund Investors: 103
Comerica Bank recently took a detailed look at the sectors that move positively during election years. The bank’s research shows that financial services and energy sectors benefit during election years while the technology sector underperforms when Americans go to polls. In this context, JPMorgan Chase & Co (NYSE:JPM) could be the safest stock to own before and after US election 2024.
Goldman Sachs recently published a list of stocks and sectors that could benefit from a Republican victory in US elections 2024. JPMorgan Chase & Co (NYSE:JPM) was part of the list under the de-regulation category.
Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:
“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”
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