Caterpillar (CAT, Financials), Tesla (TSLA, Financials), and Republic Services (RSG, Financials) emerged as the top investment choices following a Republican sweep of the U.S. presidency and Congress, Oppenheimer analysts said Wednesday.
The financial services company listed as main drivers behind these choices possible changes in economic policy, particularly support for domestic manufacturing, as major factors.
Oppenheimer claims that the outcome of the most recent election—which saw Donald Trump take back the White House—is expected to produce policies encouraging home industry. These developments may affect many different sectors, especially those related to waste management, electric cars, and building.
Leader in construction and earth-moving machinery worldwide, Caterpillar is probably going to gain from these changes. Major participants in the electric vehicle market, Tesla and Republic Services—which specializes in waste management and methane-based energy generation—are also anticipated to find advantageous conditions under the new government.
Oppenheimer's suggestions result from lower corporate tax estimates and reshoring incentives paired with expected government assistance for electric vehicles being lessened.
Colin Rusch, an analyst at Oppenheimer, said, "We expect sharp repositioning across the coverage universe as investors digest the news.”
The report also pointed out that although historical data shows no clear connection between U.S. election results and the success of clean energy equities, the medium-term view might rely more on global demand trends and the stability of tax policies supporting industrial industries.
