We are less than a week away from the United States presidential election. Democratic candidate Joe Biden has strengthened his position in national and battleground state polls in October. Unless there is a massive polling error, it looks like Donald Trump is in a very precarious position. Last week, I’d looked at three TSX stocks that investors should sell no matter who wins the election. Today, I want to look at TSX stocks that you should buy whether it is Biden or Trump that gives a victory speech next week.
Why you should buy this TSX stock no matter what happens in November Top U.S. banks like Goldman Sachs (NYSE:GS) have declared that a Biden win would be bullish for the financial sector. Indeed, Barack Obama oversaw the beginnings of one of the longest bull markets in the modern era. Moreover, Goldman and its peers are excited about the prospects of a monster stimulus package in the aftermath of the election.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the first TSX stock that I’m stashing no matter how the election turns out. Its shares have climbed 8.4% over the past three months. CIBC does not boast the U.S. footprint of a TD Bank, but it has still received a nice boost in its earnings due to its own U.S. operations. In Q3 2020, the bank saw pre-provision net income in its U.S. Commercial and Wealth Management segment rise $23 million year over year. This was fueled by volume growth, increased asset management fees, and the impact of foreign exchange translation.
This TSX stock last possessed a price-to-earnings (P/E) ratio of 11 and a price-to-book (P/B) value of 1.2. This puts CIBC in favourable value territory. Better yet, it offers a quarterly dividend of $1.46 per share. That represents a strong 5.8% yield.
The sky is the limit for this healthcare stock Whoever wins the presidential election will still be forced to contend with the most destructive pandemic in the post-WWII era. The most hopeful experts in the healthcare space are predicting that several vaccines will achieve approval before the end of 2020. In Canada, this will likely lead to widespread distribution by the spring of 2021. Regardless, this TSX stock is a game changer worth owning.
Lockdowns and social distancing have forced healthcare practitioners to be creative. The rise of telehealth, which allows for remote health consultations, has powered growth at WELL Health Technologies. Shares of this TSX stock have soared over 400% in 2020. This is a stock to own for the future no matter who wins the U.S. election, and any future Canadian election, for that matter.
Low interest rates will continue to boost this TSX stock Monetary policy under the Barack Obama and Donald Trump administrations has been historically loose. Trump took an active role in pushing for lower interest rates. Bluster aside, there is a consensus in the U.S. and across the developed world that historically low interest rates and cheap credit are here to stay. That is good news for Real Matters.
This TSX stock has climbed 93% so far this year. Its shares have increased 111% year over year. Real Matters’s earnings have been impressive in the face of the pandemic. Management is confident that it will continue to perform well due to this friendly interest rate environment.
The post Biden vs. Trump: 3 TSX Stocks to Buy No Matter Who Wins appeared first on The Motley Fool Canada.
Fool contributor Ambrose O'Callaghan owns shares of TORONTO-DOMINION BANK.
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