These Stocks Are Primed For A Breakout Once Donald Trump Takes Office In January

The election of a new president always signals an imminent change in many aspects of American life. That's because every President has policy priorities, especially concerning the economy. Based on his comments during the campaign, it's clear that the Trump presidency will be very pro-business, which means there will be some big winners on Wall Street. Read to discover why these stocks could boom during Trump's second term.

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Chevron- CVX

Donald Trump has made no bones about his commitment to expanding America's fossil fuel production. The chant of "Drill, baby, drill" can be heard often at his rallies and it will likely be a central tenet of his domestic policy. That means energy stocks like Chevron can potentially pay off in a major way. Chevron shares are currently trading at $156.50, but several analysts believe this stock has big upside for 2025.

Josh Silverstein of UBS is the most bullish on Chevron. He believes the stock is undervalued by nearly 25% and has recently upgraded his outlook to "strong buy." He also elevated his share price target from $192 to $194. Biraj Borkhataria of RBC Capital's expectations are slightly more modest, but he's raised his outlook from $170 to $175 and gives Chevron a "buy" rating.

Chevron shareholders also benefit from passive income. For the past 10 years, Chevron has consistently paid dividends. Currently, the oil giant pays a 4.17% dividend, which is distributed to shareholders quarterly. If the Trump administration clears the way for more oil drilling, Chevron's dividend and share price could increase in the next four years.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

The Geo Group- (NYSE: GEO)

Donald Trump's immigration policies may not be popular with all Americans, but with his party controlling both houses of Congress, a legislative crackdown on illegal immigration is likely. If Trump's campaign statements are any indicator, there will also be an equally strong crackdown on violent crime. Both of those developments could benefit The GEO Group (GEO).

GEO is a real estate investment trust (REIT) that owns and operates for-profit correctional facilities. One of GEO's largest clients is the U.S. Immigration and Customs Enforcement, which contracts with GEO to run its immigration processing centers. The U.S. Marshals Service also relies on GEO to operate detention centers. Both agencies will likely play a large role in Trump's crackdown on illegal immigration and violent crime.

That means GEO could be set for rapid expansion, which is part of why Jones Capital and Wedbush analysts have given this stock a buy rating despite GEO missing its earnings forecast for Q3 2024. GEO shares are currently trading at $25.93, but this stock does not pay dividends. So, investors searching for passive income may want to look elsewhere, but GEO’s share price could certainly appreciate under Trump.

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Lockheed Martin (NYSE: LMT)

Traditionally, defense contractors have done well under Republican administrations and with the GOP set to control the nation's budget, that trend looks likely to continue. According to U.S. News, Lockheed Martin was also a heavy donor to the Trump campaign. That typically translates to a boost in contracts and revenue, benefiting Lockheed Martin Shareholders.

Lockheed is one of America's most well-respected defense contractors and its $133 billion market cap proves it. Bank of America analysts recently said that a GOP-controlled Congress and White House is a "best-case scenario" for this company. Now that this has come to pass, Lockheed is primed to grow even larger. Unfortunately for value hunters, Lockheed shares are trading at $565.94, but it does pay a 2.31% dividend.

Bear in mind that there is never a guarantee that these stocks will rise in 2025. There is always a risk with any investment. That said, Trump's policy priorities would seem to indicate that the stocks listed here could make a big profit for investors. 

Interest Rates Are Falling, But These Yields Aren't Going Anywhere

Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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