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StreetInsider.com Guide for Presidential Election Stocks

November 6, 2012 10:56 AM EST Send to a Friend
Investors are positioning ahead of results from today's Presidential election. Recent polls show a slight lead for Mitt Romney nationally, however President Obama is leading in key battleground states which could give him the electoral edge. Website InTrade shows a 71.5 percent chance of an Obama win, while only 28.8 percent for Romney.

Below is a guide to key sectors that will be reacting to the results.

HEALTHCARE:
Insurers: A Romney victory will be a positive for health insurance companies like Cigna (NYSE: CI), Aetna (NYSE: AET), Humana (NYSE: HUM), UnitedHealth Group (NYSE: UNH), WellPoint Inc. (NYSE: WLP) as he has promised to repeal Obamcare.

Hospitals: Hospital stocks will benefit from an Obama win. Some hospital stocks include HCA Holdings, Inc. (NYSE: HCA), Tenet Healthcare Corp. (NYSE: THC), HEALTHSOUTH Corp. (NYSE: HLS), Community Health Systems, Inc. (NYSE: CYH), Health Management Associates Inc. (NYSE: HMA), Universal Health (NYSE: UHS).

Medical Devices: A Romney victory would be a positive for medical device makers as the Obamacare 2.3% revenue tax wouldn't go into effect if it is repealed. Medical device stocks include: Medtronic, Inc. (NYSE: MDT), Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), Intuitive Surgical (Nasdaq: ISRG), St. Jude Medical Inc. (NYSE: STJ).

OIL/GAS
Refiners: A Romney victory will could be a negative for refiners. "We believe a Mitt Romney election win—broadly supported by the refining industry—could in fact threaten the crude export ban, assuming his chief energy advisor, Harold Hamm, CEO of Bakken play Continental Resources, would support de-regulation," analysts at Deutsche Bank said. Refiner stocks inlcude: Valero Energy (NYSE: VLO), Phillips 66 (NYSE: PSX), Tesoro (NYSE: TSO), Marathon Petroleum (NYSE: MPC), HollyFrontier (NYSE: HFC).

Major Integrated: A Romney victory would be a positive for Major Integrated Oil & Gas companies like Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX) and ConocoPhillips (NYSE: COP).

RENEWABLE ENERGY:
Solar: An Obama win would be a positive for solar stocks like First Solar, Inc. (NASDAQ: FSLR), SunPower Corporation (NASDAQ: SPWR), Suntech Power Holdings Co. Ltd. (NYSE: STP).

Ethanol: An Obama win would be a positive for ethanol stocks like Archer Daniels Midland (NYSE: ADM), The Andersons, Inc. (NASDAQ: ANDE), and Green Plains Renewable Energy, Inc. (NASDAQ: GPRE).

FINANCIALS:
Regional Banks: A Romney victory would be a positive for regional banks like U.S. Bancorp (NYSE: USB), PNC Financial (NYSE: PNC), Regions Financial (NYSE: RF), BB&T Corporation (NYSE: BBT).

Large Banks: A Romney victory would be a positive for large banks as he could repeal part of Dodd-Frank. Stocks include: JPMorgan (NYSE: JPM), Goldman Sachs Group (NYSE: GS), Citigroup, Inc. (NYSE: C), Bank of America (NYSE: BAC).

Mortgage Insurers: An Obama win would be a positive for mortgage insurers like Radian Group Inc. (NYSE: RDN) and MGIC Investment Corp. (NYSE: MTG).

DEFENSE:
A Romney victory would be a positive for defense stocks like General Dynamics (NYSE: GD), Lockheed Martin (NYSE: LMT), The Boeing Company (NYSE: BA), Northrop Grumman (NYSE: NOC), Raytheon Co. (NYSE: RTN). "When I am president, I will not cut our commitment to national defense" - Romney.

COAL:
Coal stocks have rallied significantly since the first debate when Romney said, "I like coal." Still, a Romney victory would be a positive for the group. Stocks include: Arch Coal Inc. (NYSE: ACI), Peabody Energy Corp. (NYSE: BTU), Alpha Natural Resources, Inc. (NYSE: ANR), Walter Energy, Inc. (NYSE: WLT).

EDUCATION:
Education stocks have fallen hard under the Obama administration following the massive overhaul of federal student financial aid. Given this a Romney victory would be a viewed as a positive for the group and stocks like Apollo Group Inc. (NASDAQ: APOL), DeVry, Inc. (NYSE: DV), Strayer Education Inc. (NASDAQ: STRA), ITT Educational Services Inc. (NYSE: ESI), Corinthian Colleges Inc. (NASDAQ: COCO), Career Education Corp. (NASDAQ: CECO).




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