Even though the outgoing House Speaker will step down from the leadership role, the best Nancy Pelosi stocks to buy still capture investors’ attention. Part of the enthusiasm centers on the lawmaker’s access to information and her decades of experience negotiating U.S. policy. Love her or hate her, one thing is crystal clear: You have to be informed to lead one of the two major parties of this country.
As well, the Speaker’s husband Paul Pelosi is a venture capitalist by trade. On a personal level, he frequently trades public securities, meaning that he also carries significant clout. Therefore, by aligning your portfolio with the best Nancy Pelosi stocks to buy now, investors can potentially reap extraordinary benefits. Again, irrespective of politics, these folks know what they’re doing.
As of this moment, nothing much has changed in terms of the outgoing House Speaker’s equity ownership since the last time I covered this topic. Therefore, I’ll focus on any recent developments specifically impacting the below best Nancy Pelosi stocks to buy.
Best Nancy Pelosi Stocks: Alphabet (GOOG, GOOGL)
Arguably one of the most compelling names among the best Nancy Pelosi stocks to buy, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) makes plenty of sense because of its vast tech dominance. Specifically, the company effectively owns the internet. Based on the latest data regarding the global search engine sector, Alphabet’s Google owns 92.2% market share. If you want to be known on the internet, you must appease the gatekeeper.
According to the Clerk of the House of Representatives, on Sept. 16, 2022, the House Speaker exercised 200 call options that were purchased on Dec. 17, 2021, featuring a strike price of $100. Since the exercise date, GOOG has dipped about 7.5%. For now, then, it’s not the politician’s brightest prospect. Nevertheless, over time, GOOG should serve investors well.
Again, businesses go nowhere if they’re not ranked (and ranked high) on Google. Further, Alphabet enjoys strong financial metrics. In particular, the company enjoys strong profit margins, which in turn leads to a return on equity of 26.6%. This stat rates higher than more than 85% of the competition.
A solid name all around, Microsoft (NASDAQ:MSFT) easily makes a case for being one of the best Nancy Pelosi stocks to buy. Fundamentally, the company dominates the business application ecosystem. For instance, regarding the global desktop operating system sector, Microsoft’s Windows commands more than 75% market share. Basically, if you want to survive in the professional realm, you must be fluent in Microsoft.
Per the records from the Clerk of the House of Representatives, the House Speaker acquired MSFT stock via two transactions, both on May 24 of this year. In the first, Pelosi purchased 10 call options with a strike price of $180. On the second, she purchased 40 call options with a strike price of $180. Both options expire on June 16, 2023.
According to Gurufocus’ proprietary calculations for fair market value (FMV), MSFT makes a case for being a modestly undervalued investment. Most attractively, Microsoft commands excellent profitability margins. For example, its net margin stands at 34.4%, ranking better than nearly 97% of the competition. Also, its ROE is nearly 43%, indicating superior capability of converting equity capital into profits.
Best Nancy Pelosi Stocks: American Express (AXP)
A financial institution specializing in payment card services, American Express (NYSE:AXP) makes for an intriguing case among the best Nancy Pelosi stocks to buy. On one hand, the erosion of consumer sentiment implies that many folks will tighten their belts. That wouldn’t necessarily help consumption-driven organizations. On the other hand, American Express generally caters to a wealthier clientele. Therefore, standard rules might not apply.
One thing’s for certain: the House Speaker remains bullish on AXP based on the latest transaction data. Official records show that Pelosi exercised 50 call options on AXP at a strike price of $80. The transaction occurred on Jan. 21, 2022. While AXP may be down 6.4% on a year-to-date (YTD) basis, the $80 strike price means that Pelosi remains deeply profitable. It’s also encouraging that she hasn’t sold off shares yet.
Ranking among the high-level names of the best Nancy Pelosi stocks to buy, AllianceBernstein (NYSE:AB) represents a global asset management firm. Specifically, the company caters to institutional, high-net-worth and retail investors. More than likely, AllianceBernstein favors the former two categories, which makes AB stock an intriguing idea.
Basically, your high-net-worth investor and your more average investor differ largely in terms of access to information. Members of the former category receive financial guidance from the very best analysts and institutions. However, folks in the latter category may get their info from internet luminaries. I’m not saying there’s anything wrong with that. However, serious asset managers will know how to direct portfolios in good times and bad.
Therefore, if AllianceBernstein can successfully guide its clients to decent profitability during this environment, there’s no telling what rewards may lie in the future. Stated differently, anybody can pick stocks in a decisive bull market. It’s the real experts that can deliver the goods during a bear market.
Lastly, Pelosi remains bullish on AB, purchasing 10,000 shares on Jan. 27 of this year.
Best Nancy Pelosi Stocks: Tesla (TSLA)
Against a longer-term framework, Tesla (NASDAQ:TSLA) represents one of the most profitable names among the best Nancy Pelosi stocks to buy. While I wouldn’t say it pioneered electric vehicles, it certainly made the concept of an EV-only enterprise a feasible one. As well, the company plays an important role in addressing mobility needs while also meeting environmental objectives.
Unfortunately, even mighty Tesla succumbed to the downfall of 2022. So far this year, shares gave up nearly 60% of equity value. Nevertheless, the outgoing House Speaker toes the line. On March 17 of this year, she exercised 25 call options with a strike price of $500. Now, keep in mind that Tesla approved a 3-for-1 stock split on Aug. 4 of this year.
Moving forward, Tesla is a bit of a wild card. On one hand, the world learned a sharp lesson about the dangers of hydrocarbon energy dependence on unreliable partners. But on the other hand, EVs remain incredibly expensive relative to the average household. Still, those that believe in the electrification of mobility may want to pounce on TSLA’s presently discounted price.
With so many changes that erupted this year, even the outgoing House Speaker did some spring cleaning in her portfolio. However, based on her still-bullish stance, CrowdStrike (NASDAQ:CRWD) represents one of the best Nancy Pelosi stocks to buy. As a cybersecurity technology firm, CrowdStrike enjoys significant relevance. After all, cyber breaches and other forms of comprised data have only increased over the years.
Working in the top levels of government, Pelosi likely understands the grave statistics. Recently, a report indicated that cyberattack costs for U.S. businesses increased by a startling 80%. On Sept. 3, 2020, the Speaker purchased 5,000 shares of CRWD.
Admittedly, though, CRWD represents a name to watch closely and carefully. Since the January opener, CrowdStrike shares dropped 39%. Therefore, it’s an open question whether Pelosi might consider exiting her position.
Also, CRWD presents a mixed profile financially. For instance, while it enjoys strong revenue growth, the market prices CRWD at nearly 58 times forward earnings. Still, as cybersecurity concerns continue to rise — think about the recent cryptocurrency fiasco — CrowdStrike could be intriguing.
Best Nancy Pelosi Stocks: Roblox (RBLX)
Perhaps the most peculiar name among the best Nancy Pelosi stocks to buy, Roblox (NYSE:RBLX) wouldn’t be the first idea I’d associate with the public servant. Part of the reason has to do with the underlying business. As a video game development platform, I can’t imagine that members of Congress care too much about this industry.
The other reason it’s difficult to peg Pelosi as an RBLX shareholder is the volatility. Since the January opener, RBLX dropped more than 67%. Since making its first public debut, data from Google Finance reveals that it’s under parity by nearly 54%. Nevertheless, Pelosi took a shot on Dec. 20, 2021, purchasing 100 call options with a strike price of $100. They expire on Jan. 20, 2023.
Unfortunately, unless a miracle transpires Pelosi’s options will expire worthless. That said, RBLX did gain nearly 6% in the trailing five sessions. If you have high conviction in the video-gaming platform, you may want to place a high-risk wager.
On the date of publication, Josh Enomoto 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.