Wall Street and the White House: 3 Stock Picks That Align With JD Vance’s Policy Agenda

Former president Donald Trump’s running partner for the 2024 presidential contest is JD Vance. Declared in mid-July 2024, this choice positions Vance as the Republican vice-presidential candidate alongside Trump himself. JD Vance follows Donald Trump’s populist agenda and draws on his venture capitalist and political expertise to shape economic policy and investing strategy. Thus, JD Vance-related stocks are gaining attention.

Vance is likely to foster a regulatory environment better suited for mergers, promoting consolidation, which would help boost economic development and simultaneously support competitive marketplaces.

As a major component of his political and economic strategy, JD Vance pays great attention to local manufacturing. Particularly in areas like the Midwest, touched by globalization and the loss of manufacturing jobs, he supports initiatives to revive American industry.

His position is consistent with the Republican platform, which prioritizes American workers and industries above global economic integration. This emphasis on local production matches Vance’s support for tariffs and other protectionist measures to encourage American business.

As a result, let’s look at three stocks expected to benefit from Vance’s policy positions; these stocks are also analyst favorites and come with double-digit upsides.

JD Vance Stocks: Chevron (CVX)

Chevron (NYSE:CVX) matches Vance’s emphasis on national security and energy independence. Even though renewable energy is important, JD Vance has emphasized conventional energy, meaning investors need to look out for stocks in this area. Chevron fits Vance’s energy policy aims because of their local production and huge U.S. energy footprint. CVX’s upside is a potential 24%.

Chevron is pursuing significant M&A activity, including a $53 billion all-stock deal to purchase Hess Corporation, which will enhance its oil and gas reserves, notably in Guyana, which boosts long-term output. CVX expects efficiencies to make the deal cash flow per share accretive in 2025.

The business has already finalized the $7.6 billion purchase of PDC Energy, improving its oil and gas production capacity and, therefore, strengthening its position in important U.S. shale fields.

Meanwhile, Chevron’s headquarters is moving from San Ramon, California, to Houston, Texas, reflecting a shift toward business-friendly conditions rather than California’s ongoing climate change lawsuits.

At the same time, Chevron actively funds renewable energy projects as part of its carbon reduction agenda. The company announced plans to increase renewable fuel production and is building the first renewable hydrogen factory using oilfield infrastructure.

Finally, another reason to focus on Chevron, among JD Vance stocks, is that it’s a Dividend Aristocrat, meaning CVX has increased its dividend for 25 years and more. The dividend of $1.63 per share translates into an annual dividend yield of 4.4%, handsomely above the sector average of 3.8%.

Ford (F)

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Ford (NYSE:F) symbolizes American productivity for almost a century. Vance advocates backing American-owned companies that invest in their employees. Ford’s huge EV expenditures, especially in American manufacturing, support Vance’s domestic job development and technical leadership goals. The iconic automaker’s upside is estimated at around 39%.

Ford’s second-quarter 2024 financial results show its future path under the Ford+ strategy. Ford Model e’s EBIT loss from pricing pressures and lower EV sales is concerning, but the company remains optimistic. The carmaker predicts strong performance with a full-year EBIT of $10 billion to $12 billion and increased free cash flow projections for Ford Pro and Ford Blue.

At the same time, Ford is heavily committed to Ford+’s long-term growth and value creation. Losses from Ford Model e notwithstanding, the company has raised its full-year free cash flow prediction due to strong growth in other industries.

Placing it highly among JD Vance stocks, Ford will spend $50 billion on electric cars globally through 2026, mostly in the US. Ford’s bigger strategy includes investing in manufacturing facilities, battery plants, and new electric models in addition to electric vehicle assistance.

Among the noteworthy American investments is the $11.4 billion joint venture with SK Innovation to develop two large battery production facilities in Tennessee and Kentucky, likely to generate over 11,000 jobs. Ford’s aim of manufacturing two million electrified cars yearly by 2026 depends on these expenditures.

Alcoa (AA)

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The automobile, aerospace, and construction industries depend critically on Alcoa‘s (NYSE:AA) aluminum business. Alcoa’s emphasis on regional production helps Vance to achieve his objective of recovering important supply lines. Based on a $46.2 price objective, AA’s potential is 48%.

Alcoa has several significant transaction milestones and has progressed far in acquiring Alumina Limited. This acquisition is intended to improve Alcoa’s position in the global aluminum market by providing better access to raw materials.

Alcoa’s second-quarter financial reports revealed steadily expanding net profits and sales. Prices for alumina and aluminum benefitted the company; its strategies for increasing profitability have shown continuous success.

Stronger environmental constraints and consumer awareness have driven demand for low-carbon aluminum, which Alcoa is also manufacturing. Lower carbon footprints on Alcoa’s aluminum products help to appeal to environmentally conscious investors and companies.

Alcoa is also partnering with Rio Tinto, a global energy company, in a notable alliance called ELYSIS, which is working to produce carbon-free aluminum with the hopes of totally offsetting all direct greenhouse gas emissions from the aluminum smelting process.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Faizan Farooque 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.