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Top 15 Stocks to Gain from Obama Victory

 November 07, 2012 01:04 PM

(By Mani) Americans have re-elected President Barack Obama for a second term. Some of the greatest Obama beneficiaries will be hospitals, specialty pharma, green energy and infrastructure names.

Following are the stocks that are poised to benefit from an Obama victory. They include:

AFLAC, Inc. (NYSE: AFL): The company's target market in the U.S. is middle- to lower-income individuals. To the extent these socio-economic groups receive higher discretionary income from tax cuts, it's possible they could purchase more insurance products.

AECOM Technology Corp. (NYSE: ACM) : "We would expect Obama's policy pursuits to support infrastructure spending, which accounts for roughly 20% of revenues," UBS analyst Steven Fisher wrote in a note to clients.

[Related -General Electric Company (GE) Q4 Earnings Preview: Feeling The January Effect]

Alkermes Plc (NASDAQ: ALKS): A majority of sales come from indications such as schizophrenia (Risperdal consta and Invega Sustenna), diabetes (Bydureon) and multiple sclerosis (Ampyra), which should all see increased usage as more people benefit from health insurance coverage.

American Tower Corp. (NYSE: AMT): Tower companies benefit most from a Democratic win as less consolidation is good for these providers.

[Related -AFLAC (AFL): Still Cheap Despite The Recent Price Run-Up]

Alliant Techsystems, Inc. (NYSE: ATK): ATK sells bullets for sporting/hunting. Gun control concerns could lead to people stock piling bullets.

Crown Castle International Corp. (NYSE: CCI): An Obama victory means less consolidation among tower companies, which is a positive for the company.

CME Group, Inc. (NASDAQ: CME): Financial regulation should push more activity from opaque broker-dealer-driven OTC markets to regulated exchanges.

First Solar, Inc. (NASDAQ: FSLR): Approximately 60 percent of First Solar's systems business is funded by Department of Energy's loan guarantees.

"We believe that an Obama win will lower the probability of retroactive cuts to the DOE's loan program," UBS analyst Stephen Chin said.

General Electric Co. (NYSE: GE): GE is a stock to watch considering increasing exports have been a central theme of the Obama's re-election campaign, and it is one of his goals to continue growing exports in a second-term.

HCA Holdings, Inc. (NYSE: HCA): HCA is a play on health reform implementation. The company generates more than 50% of its revenue from Florida and Texas, which are two of the top three states with the highest number of uninsured persons.

Mohawk Industries, Inc. (NYSE: MHK): As the president is reelected, the focus could be on building products names as the Fed's efforts to reflate home prices will continue. In this scenario, existing homeowners should be more willing to undertake delayed repair and remodel projects.

Marsh & McLennan Cos, Inc. (NYSE: MMC): An increasingly complex regulatory environment and health care reform should create additional revenue opportunities for MMC's Mercer and Oliver Wyman consulting businesses.

"Also, if accelerating tort inflation leads to higher commercial lines insurance pricing, insurance brokerage revenue growth would benefit," analyst Brian Meredith noted.

Tanger Factory Outlet Centers, Inc. (NYSE: SKT): Tanger is a defensive stock in the commercial real estate industry. Its outlet centers have a clear "value" bias to consumers, which retailers are flocking to as a distribution channel. The balance sheet is one of the strongest in the REIT industry.

"We see prospects for 10% adjusted funds flow from operations (AFFO) growth in 2013," analyst Ross Nussbaum said.

TE Connectivity Ltd. (NYSE: TEL): An Obama victory would be marginally positive for TE Connectivity to the extent a win drives higher infrastructure investments, especially in energy and telecom networks (broadband stimulus).

United Rentals, Inc. (NYSE: URI): United Rentals would be a beneficiary of potential domestic infrastructure spending increases, with roughly 15 percent of revenues generated from North American infrastructure end markets and another 50 percent from non-residential construction.



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