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Clinton's Odds of Winning Presidency High: Top 5 Picks

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The third and final face-off between Donald Trump and Hillary Clinton saw the hurling of accusations and claims of deceit along with substantial discussion on foreign policy and budget deficit.

Following the heated discussion, media hailed Clinton as a winner, as has been indicated by the opinion polls. It will be, therefore, prudent to invest in stocks from sectors that stand to benefit if Clinton makes it to the White House.

Clinton Set to Make History

Like the previous debates, the final one was closely contested. Trump started off with a composed demeanor and promptly responded to moderator Chris Wallace’s questions related to the Supreme Court. However, he reverted to bullying, with claims that are more often than not devoid of factual evidence.

The most bizarre of the charges leveled by Trump was Clinton’s foul play in the sexual misconduct claims made by nine women. His derogatory remarks against women eclipsed the real issues, while his claims of a rigged election seemed to be outlandish.

Trump is also under the false impression that trade agreements are the reason for economic depression and job losses. Lest we forget, jobs dependent on trade more than doubled from 1992 to 2014. Thanks to such developments, Trump has blown his chances of winning the elections.

On the other hand, Clinton’s stance on late-term abortions and her commitment toward protecting women and children garnered a lot of support. Clinton, moreover, has a fully-formed technology policy. She understands the value of education in science and technology, and has also voiced her support toward technical training in high schools and colleges.  This will eventually help the youth find placements in the future. In contrast, Trump failed to present a concrete policy on technology.

Polls Favor Clinton

Following the final debate, Clinton clearly has a lead in the polls. A CNN/ORC survey gave Clinton a 13 point lead over Trump. Among the 547 registered voters interrogated, 52% deem Clinton as a befitting candidate while Trump managed 39% support.

Majority of media outlets around the world view Clinton as the winner. France’s Le Point said that “Trump can no longer win, but can refuse to admit defeat”. Spain’s El Mundo added that Trump’s aggressive nature “once again made Clinton a winner by default over her rival”. Italy’s Corriere Della Sera comment takes it a notch higher as she believes Trump is “one step away from the abyss”.

In the Middle East, the Al-Bayan daily is spreading the word that “Clinton surpasses Trump”, while Trump’s support is on the decline in another group of people – English learners in China.

Where to Invest if Clinton Beats Trump?

Let us take a look at the sectors that will thrive if Clinton becomes the next President. Clinton wants to hike the federal minimum wage to $12 from $7.25 and even to $15 in regions where feasible. This should boost spending power, which in turn bodes well for the consumer staples stocks. When it comes to outlays, Clinton proposed to spend $275 billion on infrastructure, which should drive activity in the construction industry.

Clinton has also suggested several policies that would provide an impetus to renewable energy companies. She has pledged to install over 150 gigawatts of solar capacity by 2020 – six times the current levels. For the defense space, she has adopted an aggressive stance and intends to defeat ISIS and build a strong military base. This should boost sector heavyweights like Lockheed Martin Corporation (LMT - Free Report) and General Dynamics Corporation (GD - Free Report) .

The healthcare and pharmaceutical stocks have been pricing in a Clinton win since she announced her candidacy in Apr 2015. Clinton’s tweet that “price gouging in the specialty drug market is outrageous” had impacted the industry. But, this has also given plenty of opportunity to buy sound stocks from this beaten-down industry at a lesser price. To top it, pharmaceutical companies might see an upward correction after the election, thanks to Clinton’s policy proposals that have been well communicated.

Top 5 Gainers

Clinton’s edge over Trump, heading into the presidential election, calls for investing in the aforesaid sectors. We have selected five such stocks that boast a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have a VGM score of ‘A’ or ‘B’. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. While a solid Zacks Rank and VGM score eliminates the negative aspects of stocks and select winners, a Clinton win will certainly help them rally further.

Constellation Brands Inc. (STZ - Free Report) produces, imports and markets beer, wine, and spirits. Constellation Brands has a Zacks Rank #2 and a VGM score of ‘B’. The company's projected earnings growth rate for the current year is pegged at 18%. The Zacks Consensus Estimate for its current year earnings advanced 1.3% over the last 60 days.

Pepsico, Inc. (PEP - Free Report) operates as a food and beverage company. It has a Zacks Rank #2 and a VGM score of ‘B’. The company's projected earnings growth rate for the current year is pegged at 5%. The Zacks Consensus Estimate for its current year earnings increased 0.6% over the last 60 days.

NCI Building Systems Inc. designs, engineers, manufactures and markets metal products for the nonresidential construction industry. The company has a Zacks Rank #1 and a VGM score of ‘A’. You can see the complete list of today’s Zacks #1 Rank stocks here. NCI Building Systems’ projected earnings growth rate for the current year is 83.3%. The Zacks Consensus Estimate for its current year earnings surged 20.3% over the last 60 days.

Hanwha Q CELLS Co., Ltd. develops, manufactures and sells solar cells and photovoltaic (PV) modules. The company has a Zacks Rank #2 and a VGM score of ‘A’. Hanwha Q CELLS’ projected earnings growth rate for the current year is pegged at 391.2%. The Zacks Consensus Estimate for its current year earnings soared 51.8% over the last 60 days.

Thermo Fisher Scientific, Inc. (TMO - Free Report) provides analytical instruments, software and services for research, manufacturing, analysis, discovery and diagnostics. The company has a Zacks Rank #2 and a VGM score of ‘B’. Its projected earnings growth rate for the current year is pegged at 10.9%. The Zacks Consensus Estimate for its current year earnings increased 0.6% over the last 60 days.

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