As the stock market navigates post-election economic shifts, those are eyeing stocks that promise growth and demonstrate resilience against market fluctuations. Understanding the fundamentals behind these choices can significantly enhance portfolio strength and stability. Here, the focus is on the top contenders currently commanding attention. Each company represents a distinct sector — defense technology, retail home improvement and residential construction. However, they share a fundamental commitment to operational excellence and strategic foresight.

The first one is a stalwart in defense contracting. The company continues to impress with solid revenue growth fueled by ongoing government support, geopolitical instability and a substantial backlog. The second one, amidst retail challenges, reflects stability through targeted sales strategies in the uplifting housing improvement market. Meanwhile, the third one excels in the emerging homebuilding boom with constant production and sharp margin management. Learn why these companies stand out as compelling opportunities during the elections in 2024. Their strategic initiatives, financial health and market positions explain how these stocks align with broader economic trends and investment goals.

Lockheed Martin (LMT)

Lockheed Martin (NYSE:LMT) leads the aerospace and defense markets. The company had Q1 2024 net sales of $17.2 billion, a 14% increase annually. Adjusting for the extra calendar week, the normalized sales growth was 5%. This growth was primarily driven by higher volumes across its business segments, particularly in aeronautics, missiles and fire control (MFC). The segment’s operating profit was $1.7 billion, with margins of 10.1%.

Moreover, Lockheed Martin maintains a high backlog of $159 billion, reflecting top-line solid visibility. The backlog includes lead programs (F-35 and C-130) and missile defense systems. The approved 2024 defense budget and early indications for fiscal 2025 marks high government support for Lockheed Martin’s programs. These include robust funding for munitions, hypersonics and classified activities, including continued investment in major platforms like the F-35 and CH-53K. The budget additions for fiscal 2025 further boost Lockheed Martin’s growth prospects. Hence, these additions ensure sustained funding for critical defense programs.

Lockheed is on the election stocks to buy list due to its revenue growth, substantial backlog and strong government support.

Lowe’s Companies (LOW)

The retail home improvement giant Lowe’s Companies (NYSE:LOW) delivered first-quarter sales of $21.4 billion. This reflects a 4.1% annual decline in comparable sales. Despite this, Lowe’s strategic agility allowed it to capitalize on crucial categories like outdoor power equipment, which was enhanced by partnerships such as the launch of Toro products. 

This expanded Lowe’s market appeal and customer base. Lowe’s Total Home strategy, emphasizing professional (Pro) and online sales growth, yielded positive outcomes in Q1. Pro sales have been boosted by strategic investments in service improvements and expanded brand portfolios like Klein Tools. These initiatives targeted small- to medium-sized pros, a lucrative segment in the $500 billion pro-market. 

Further, online sales at Lowe’s grew approximately 1% in Q1, showcasing ongoing improvements in conversion rates despite challenges in DIY bigger ticket categories. The company expanded its same-day delivery options through partnerships with DoorDash (NASDAQ:DASH) and Shipped, complementing existing services like Instacart and OneRail. Moreover, the national rollout of MyLowe’s Rewards program further enhanced customer loyalty and personalized shopping experiences.

Lowe’s is included in the election stocks to buy list for its strategic adaptations in a competitive retail environment.

Lennar (LEN)

Lennar (NYSE:LEN) is the largest homebuilder in the U.S. The company can maintain consistent production and sales numbers, which is vital for scalability and efficiency in the homebuilding industry. In Q2 2024, Lennar started approximately 21,400 homes, sold about 21,300 homes, and delivered around 19,700 homes. This near alignment between starts, sales and deliveries (with slight variations) indicates sharp operational planning and execution.

Moreover, margin management is another strength highlighted by Lennar. The company attained a margin of 22.6% in Q2, which is sequentially up from 21.8% in the previous quarter. Lennar targets around 23% margin for Q3 2024. Lennar has a sharp focus on cash flow generation and strategic capital allocation. It allocated over $600 million for share repurchases and paid off $550 million of senior debt. This is boosting the company’s financial flexibility and market value potency. Thus, with $3.6 billion in cash and a low % debt-to-capital ratio of 7.7%, Lennar progressively invests in growth initiatives while managing financial risk prudently.

Finally, Lennar is on the election stocks to buy list due to its constant production and sales performance, sharp margin management and cash flow generation.

On the date of publication, Yiannis Zourmpanos did not hold (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.