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Jefferies analysts put together 10 actionable policies and their stock implications if Kamala Harris wins the presidential seat this November.
Aniket Shah, head of sustainability and transition strategy, said her team used 2024 Democratic platform ideas and Harris’ recent statements to outline 10 actionable proposals that require minimal legislative action.
These are the actionable policies, and some of the winner/loser stock implications, according to Jefferies:
1. Restore the top individual income tax rate to 39.6% on incomes above $400,000 for single filers and $450,000 for joint filers.
Winners: Guild Holdings (GHLD), LoanDepot (LDI), UWM Holdings (UWMC).
Losers: Arhaus (ARHS), Brunswick (BC), The Chefs’ Warehouse (CHEF), General Dynamics (GD), RH (RH), Textron (TXT), Williams-Sonoma (WSM).
2. Set new rules and penalties to prohibit food and grocery companies from expanding profit margins more than warranted.
Losers: Costco (COST), The Hershey Co. (HSY), Kellanova (K), Mondelez Int. (MDLZ), Procter & Gamble (PG), Target (TGT), Walmart (WMT).
3. The continuation of antitrust enforcement and reduction of hidden fees.
Losers: Adobe (ADBE), Affirm Holdings (AFRM), Amazon (AMZN), BofA (BAC), Bread Financial (BFH), Bristol-Myers Squibb (BMY), Citigroup (C), Chefs’ Warehouse (CHEF), Comerica (CMA), Capital One (COF), Community Health Systems (CYH), Discover Financial Services (DFS), East West Bancorp (EWBC), EZCORP (EZPW), FirstCash Holdings (FCFS), First Horizon (FHN), Alphabet (GOOGL), Goldman Sachs (GS), HCA Healthcare (HCA), JPMorgan (JPM), Kellanova (K), Kroger (KR), Meta (META), Merk & Co. (MRK), Morgan Stanley (MS), Microsoft (MSFT), OneMain (OMF), Pfizer (PFE), Performance Food (PFGC), Synchrony Financial (SYF), Sysco (SYY), Tenet Healthcare (THC), UnitedHealth (UNH), US Foods (USFD), Western Alliance (WAL), Webster Financial (WBS), Wells Fargo (WFC), Zions Bancorporation (ZION).
4. Lower drug costs by requiring pricing transparency from Pharmacy Benefit Managers.
Winner: Teva Pharmaceutical (TEVA).
Losers: Cigna (CI), CVS (CVS), Elevance (ELV), Humana (HUM).
5. Develop artificial intelligence guidelines through the AI Safety Institute.
Winners: CrowdStrike (CRWD), Palo Alto (PANW), Varonis Systems (VRNS), Warner Music Group (WMG).
Losers: Advance Micro Devices (AMD), Broadcom (AVGO), Marvell Technology (MRVL), Nvidia (NVDA).
6. The use of American-made steel, lumber, drywall, concrete, and other products for every federally funded infrastructure.
Winners: Cleveland-Cliffs (CLF), Hudbay Minerals (HBM), International Paper Co. (IP), Nucor Corp. (NUE), Steel Dynamics (STLD), United States Steel (X).
Losers: A.P. Møller – Mærsk A/S (OTCPK:AMKBY), Dakota Gold (DC), ZIM Integrated (ZIM).
7. Reshore supply chains for critical materials and technologies against China.
Winners: ArcBest Corp. (ARCB), Bruker (BRKR), Caterpillar (CAT), Canadian Pacific Kansas City (CP), Darling Ingredients (DAR), GlobalFoundries (GFS), Freeport-McMoRan (FCX), First Solar (FSLR), Intel (INTC), Mettler-Toledo (MTD), Old Dominion Freight Line (ODFL), Parker-Hannifin (PH), Rio Tinto (RIO), Saia (SAIA), STAG Industrial (STAG), Thermo Fisher Scientific (TMO), Texas Instruments (TXN), Union Pacific (UNP), Waters Corp. (WAT), XPO (XPO).
8. Limit the exports of advanced technologies to China that are deemed harmful for national security.
Winners: CrowdStrike (CRWD), CyberArk Software (CYBR), Palo Alto (PANW), Zscaler (ZS).
Losers: Advanced Micro Devices (AMD), Nvidia (NVDA).
9. Electrify federal fleet and other heavy-duty vehicles, such as school buses and transit buses.
Winners: Alcoa (AA), American Airlines (AAL), Albemarle (ALB), Allegro MicroSystems (ALGM), Ally Financial (ALLY), Amphenol (APH), BHP (BHP), Corpay (CPAY), Littelfuse (LFUS), ON Semiconductor (ON), PACCAR (PCAR), TE Connectivity (TEL), UL Solutions (ULS), Vale S.A. (VALE), WEX (WEX).
Loser: VSE (VSEC).
10. Require low-carbon materials and clean power to be used in all new federal buildings by 2030.
Winners: Alcoa (AA), Linde (LIN), Nucor (NUE), Rio Tinto (RIO), Steel Dynamics (STLD), UL Solutions (ULS).
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