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Harris's Presidential Bid Could Boost Stocks: Analysis Inside

A recent report highlights how Vice President Kamala Harris's potential presidency may influence various businesses. With strong policy stances, certain stocks like Broadcom, D.R. Horton, and MP Materials may see significant gains if she wins the election.

Date: 
AI Rating:   7

Impact of Potential Presidential Win on Stocks

The report outlines how Kamala Harris's potential victory in the presidential elections could benefit several S&P 500 companies based on her proposed policies.

1. Broadcom (NASDAQ: AVGO)

Broadcom has experienced stock price increases of over 50% in 2024, primarily driven by demand for its AI-related products. Harris's focus on investing in 'critical industries of the future,' particularly in AI and semiconductor sectors, aligns well with Broadcom’s existing strengths. Although there are concerns regarding corporate tax rate increases under her administration from 21% to 28%, the company's current federal tax contribution of only 1.3% of total net revenue suggests a manageable impact.

2. D.R. Horton (NYSE: DHI)

As the leading homebuilder in the U.S., D.R. Horton stands to gain from lower interest rates, which would reduce mortgage rates, stimulating housing demand. Harris’s favorable economic policies for controlling inflation are viewed positively by economists, further bolstering market conditions that could enhance D.R. Horton’s performance. Moreover, her plans to build 3 million new homes and provide financial assistance to first-time buyers are likely to drive growth for D.R. Horton.

3. MP Materials (NYSE: MP)

MP Materials, the largest rare earth producer in North America, could significantly benefit from Harris's commitment to supporting domestic production of critical minerals. Proposals to boost electric vehicle production and renewable energy initiatives highlight the strategic importance of MP's materials in these sectors. Therefore, if Harris were to implement her policies, MP Materials could position itself as a leader in the U.S. market.

Conclusion

Overall, the implications of Kamala Harris's potential election win are believed to be positive for Broadcom, D.R. Horton, and MP Materials. These companies could experience notable stock price increases depending on the successful implementation of her policy initiatives.

Stocks:  AVGO DHI MP