Obama has many things on his plate, including fixing the economy. Lots of people are trying to pick the winners and losers. Here are my guesses. Keep in mind that it may take several years for the impact of Obama's policies to be felt.
Defense: Lockheed Martin Corp. (NYSE: LMT), Boeing Co. (NYSE: BA), Northrop Grumman Corp. (NYSE: NOC) and Raytheon Co. (NYSE: RTN) will benefit from the spending needed to replace worn-out military equipment from the wars in Iraq and Afghanistan and Obama's push to improve health care technology. The defense contractors over the past few years have become huge government IT contractors and are experts at systems integration. Each have plunged by double-digits over the past year.
Healthy living: Call me an optimist but I expect the Obama administration to push healthier living and for greater control of health care. Hain Celestial Group Inc. (NASDAQ: HAIN), the largest provider of organic food, seems a likely beneficiary. Also, it's hard to see how he is going to be able to digitize health care records without the involvement of health insurers such as Cigna Corp. (NYSE: CI). Hain is down 42% over the past 52 weeks, while Cigna has plunged more than 70%.
Education: Shares of Apollo Group Inc. (NASDAQ: APOL), parent of the University of Phoenix, have been on a tear lately as investors bet correctly that the company would benefit from increased enrollment caused by people seeking new job training because of the recession. The company today reported strong fourth quarter results. Apollo and its peers are also benefiting from reports that the stimulus package will include additional funding for Pell Grants. Apollo shares are up 13%. Another beneficiary of this is the Washington Post Co.'s (NYSE: WPO) Kaplan education business.
Construction: The roads and bridges Obama is planning to build and fix will keep the construction and engineering industries busy for years.That's good news for the likes of Jacobs Engineering Group Inc. (NYSE: JEC) and Fluor Corp. (NYSE: FLR), both of which are down double digits over the past 52 weeks.
The next four years are going to be full of surprises. After all, who would have thought that a one-term senator with a funny name would become the leader of the free world.
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Reader Comments (Page 1 of 1)
1-20-2009 @ 9:12PM
Ed Rodriguez said...
With this Obama and this administration, one should invest their money in the Drug Trade, Money Laundering, Law Enforcement Equipment, Survival equipment and MRE's (Meals Ready to Eat.)
1-20-2009 @ 11:20PM
PJ Savage said...
Wow, very enlightened comment Ed. Goes to show how easily you are misled by your own ignorance and fear. Hope you enjoy your time in the bomb cellar eating your MRE's! Happy New Year kid....
1-21-2009 @ 6:27AM
cordelhull said...
This is garbage!
1-21-2009 @ 7:32AM
SB said...
With President Obama's push to make health insurance records available to providers in real-time - Transax International (TNSX) is a sure win. Before Bush, this company traded at over $5.00/share. Currently a steal at $0.001/Share! Learn more at http://transax.com.