Following last week’s Super Tuesday, investors may be looking for some election-proof stocks as U.S. President Joe Biden and Donald Trump are like heading to a presidential rematch. Typically, elections do not drive markets, except for companies closely tied to specific policies. However, analysts suggest that the 2024 election may differ, given the geopolitical situation. This makes now a good time to research some solid election-proof stocks to consider buying. This is especially true this year, as the winning candidate will nominate vacancies on the Federal Open Market Committee (FOMC) board, potentially affecting monetary policy.
At this juncture, it is too early to predict the November election. In the meantime, stock prices could experience some volatility, depending on polling results and candidate comments. However, this could push investors towards election-proof stocks to avoid market fluctuations ahead of the polls.
Historically, March has often seen stock pullbacks during election years, with most indices averaging negatives. The S&P 500 has typically delivered modest gains. However, this could create buying opportunities for investors looking to enter election-proof stocks to avoid fallout risks and benefit from a tendency to rally during the second half of the year.
The following election-proof stocks may perform well regardless of the 2024 election outcome, given Super Tuesday results virtually guaranteeing a Biden-Trump rematch:
Charles Schwab (SCHW)
Trading and investment firm Charles Schwab (NYSE:SCHW) is among those election-proof stocks likely to benefit from periods of increased market volatility. The company generates commissions regardless of the market’s direction. While SCH’s price retraced slightly following its poor earnings results, it was attributed to one-time effects such as accelerated debt repayment.
In addition, SCHW is well-positioned to benefit from the Fed’s expected rate cuts, independent of political circumstances. Given the prospective interest rate environment, the firm could capitalize on its size to further enhance shareholder value.
Analysts preserve a positive outlook with an average target price of $70.94, well above the current level.
Comcast (CMCSA)
Cable company Comcast (NYSE:CMCSA) is most known for its core business. However, it also functions as a primary internet services provider, giving the company a substantial moat irrespective of fluctuating cable subscriptions. As yet another one of the election-proof stocks to buy, its cash flows from operations have recently allowed for a dividend increase, too. Moreover, the company expects earnings to rise 27% over the next year.
Apart from its business advantage and improving financials, Comcast trades at a price-to-earnings (P/E) ratio of 11.67x. This is well below the sector average of 39.4, representing an excellent qualifier for our election-proof stocks list.
Campbell Soup (CPB)
Campbell Soup (NYSE:CPB) is the last of our election-proof stocks to buy ahead of the elections. Beyond their iconic canned soups, Campbell manufactures a variety of packaged foods, ensuring consistent consumer demand. As the saying goes, “People have got to eat,” regardless of who wins the elections. Despite a recent earnings miss, Campbell managed to maintain growth and improve its earnings thanks to cost-cutting improvements, positioning it well as one of the last election-proof stocks.
With a relatively attractive P/E ratio of 16.9x, Campbell offers a balanced portfolio insulated from election volatility cycles. This is well below the S&P 500 average of 27.8x.
On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
