President Trump’s inauguration is now almost two months ago, and we have been busy keeping track of the effect of the new administration on the market. Using TipRank’s research tools, we explore how top analysts see four specific stocks performing under Trump’s new administration. Three of these stocks have a strong buy analyst consensus rating but the fourth stock rating represents a more cautious note about a potential upcoming market correction should the Trump rally turn sour.

Raytheon Company

“RTN (RTN) is our #1 play on foreign arms sales likely to be bolstered by Trump’s initiatives,” wrote Cowen & Co’s Cai Rumohr earlier this month. He reiterated his RTN Buy rating and hiked up his price target by $20 to $170. Four-star Rumohr is ranked #604 out of 4,562 analysts tracked by TipRanks and has a particularly impressive performance on RTN:

Raytheon, a major US defense contractor and industrial corporation which manufactures weapons and commercial electronics (see above a photo of RTN’s satellite terminal),has “peer-high exposure to foreign arms sales” according to Rumohr. Prospects are buttressed by President Trump’s push for higher NATO spending, go-ahead for sales on hold (including blocked sales such as Saudi PGM’s/Bahrain F-16’s) and support for US exports. RTN has a Strong Buy analyst consensus on TipRanks while the average price target of $171 represents close to 9% upside from current price levels.

Verint Systems

TipRanks’ Daily Analyst Recommendations tool shows that on March 17 top Oppenheimer analyst Shaul Eyal reiterated his buy rating on analytics company Verint (VRNT) which specializes in software and hardware products for security, surveillance and business intelligence.

Eyal says “we expect the new US Federal administration’s heightened focus on critical infrastructure, particularly on cyber security, to boost demand for cyber intelligence, benefiting VRNT.” He was also bullish on the company’s recent $35 million cyber-intelligence contract. VRNT has a strong buy analyst consensus on TipRanks with 4 buy ratings published on the stock in the last three months and no hold or sell ratings. The price target represents a 6.8% upside from the share price of $40.5.

Darling Ingredients

“President Trump is a 'YUUGE' supporter of American biofuels and American agriculture” says Roth Capital. One key stock that is likely to benefit is Darling Ingredients (DAR) which has a strong buy analyst consensus rating on TipRanks and a $17.83 price target (23% upside).

Currently there is some controversy about whether Trump is planning to amend the national biofuels program which could include changing the biodiesel blenders credit to a domestic producer’s credit. Irwin says “We are optimistic any final order considers implementation of changes at the end of a compliance year, and allows for a necessary phase-in period to minimize market disruption.” Roth Capital ‘s Craig Irwin has a 70% success rate and 8.8% average return on DAR.

Warning: Spirit AeroSystems 

Spirit AeroSystems (SPR) is the world’s largest first-tier aerostructures manufacturer. Top Standpoint Research analyst Ronnie Moas recently downgraded the stock from Buy to Hold on fears that “a market correction and/or a new administration failure to force through their proposals could take gain[s] away.”

Stock prices rose from $42 in September to current levels of close to $60. He agrees that Kansas-based SPR is “a best in breed category leader”, however, “not much revenue growth is expected and the company does sit on a billion dollars in debt versus just $700 million dollars in cash.”

Moas is skeptical about the market rally in general, concluding “I constantly remind myself of a short and brilliant line that President Obama responded with recently when asked about Trump’s proposals: … if it was that easy someone would have done it a long time ago.”