Voters go to the poll in a few short months to decide whether Hillary Clinton or Donald Trump will assume the role of the next President of the United States. Public opinion views Clinton as a moderate that will in all likelihood follow the footsteps of Obama while Trump is a wild card pushing for change. The polls currently favor Hillary but given how this election cycle has already played out, it wouldn’t be that farfetched if Trump ended up victorious. If that turns out to be the case there are a several companies that should be on investors’ radar.

Apple (AAPL) Consumer Discretionary – Computers & Peripherals

One of Donald Trump’s proposed plans is to lower the corporate tax rate in the United States to incentivize companies to relocate back to domestic grounds. At the moment, the top 50 U.S. companies hold $1.4 trillion offshore to avoid the 35% federal tax rate. Apple is perhaps the biggest perpetrator with over $200 billion in cash sitting in Ireland which only has a corporate tax rate of 12.5%. Under Trump’s proposed plan, Apple could repatriate those funds in an inexpensive manner to use for M&A activity and product innovation. This would be clearly provide a huge boost to both the stock and earnings.

Smith & Wesson (SWHC) Consumer Discretionary – Leisure & Equipment & Products

Protecting second amendment rights is just another example of how Donald Trump expects to make America great. This will certainly be great for the firearm industry which continues to strive regardless of which party holds office. Smith & Wesson is one of those companies that has already made significant gains in recent years. The stock is up nearly 60% in the past 12 months and earnings continue to crush expectations. Regardless of who wins, expect gun earnings to continue rising.

Lockheed Martin (LMT) Industrials – Aerospace & Defense

Along the same lines, defense & military spending has been on the top of the republican candidate’s agenda. Whether that means bulking up the military or a implementing a stricter stance on terrorism, defense companies are in for a treat. The biggest prize will go to whomever can secure the newest government defense contracts. Lockheed Martin is often the first name that comes to mind when you think defense spending. Whether it’s them or another company like General Dynamics (GD), the whole sector is likely in for stronger earnings.

Caterpillar (CAT) Industrials – Machinery

As far back as the primaries, Donald Trump has pointed to the struggles of Caterpillar to exemplify the downturn of the manufacturing industry. Based on sluggish ISM manufacturing readings he does have a point. Weak U.S. industrial output caused by a systemic slowdown has put pressure on economic growth as well as corporate earnings. Some of the names that have been impacted the most are Caterpillar and Deere & Co (DE). Trump’s plan to bring back all industrial manufacturing to the United States would have a positive impact on these homegrown companies. Additionally, the potential “Wall” that is so often referred to would require a great deal of resources which a company like Caterpillar could provide.

Photo Credit: Diego Cambiaso