I last spoke about the best Nancy Pelosi stocks to buy last month. Since then, quite a bit has changed. Following the red wave that wasn’t, the midterm elections brought out a surprising result for both parties. Democrats outperformed expectations, taking the Senate. However, as I stand here now, it may take a miracle for the left to control the House of Representatives.
Recently, in an internal GOP vote, NPR reported that Republicans nominated Kevin McCarthy to serve as Speaker of the House, though again, the official count remains undeclared. Therefore, this may be the last time I discuss the best Nancy Pelosi stocks to buy.
With that, let’s discuss the (probably) outgoing House Speaker’s long-side portfolio.
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 92.3% 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, 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 unfortunately suffered a significant decline. 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. Notably, it commands a stable balance sheet, anchored by an Altman Z-Score of 9.93 that reflects very low risk of bankruptcy.
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 a nearly 76% 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, 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 return on equity (ROE) is nearly 43%, reflecting an extremely high-quality business.
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 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, at least as of the latest data. Official records show that exercised 50 call options on AXP at a strike price of $80. The transaction occurred on Jan. 21. While AXP may be down 8.9% on a year-to-date basis, the $80 strike price means Pelosi remains deeply profitable. It’s also encouraging she hasn’t sold off shares yet.
Though it’s a cynical topic, the exacerbation of the wealth gap that followed the coronavirus pandemic benefitted the wealthy. Therefore, AXP might perform well, making it one of the best Nancy Pelosi stocks to buy.
One of the high-level names among 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 regular run-of-the-mill type differ largely on access to information. The former category receives financial guidance from firms with names like AllianceBernstein. However, folks in the latter category may get their information from YouTube luminaries. I’m not saying there’s anything wrong with that. Nevertheless, serious asset managers will know how to direct portfolios in good times and bad.
Essentially, then, AllianceBernstein represents the YouTube luminary for accredited investors. Further, with deflationary forces working against the economy as the Federal Reserve raises the benchmark interest rate (thus tightening the money supply), only the real experts will succeed. Therefore, this dynamic gives AllianceBernstein a chance to shine above every other asset manager.
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 (EVs), it certainly made the concept of an EV-only enterprise feasible. 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 plunged over 51% of equity value. Nevertheless, the 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 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 a startling 80%. On Sept. 3 of 2020, the House Speaker purchased 5,000 shares of CRWD. Although the stock stumbled quite badly this year, Pelosi remains profitable in her position.
To be fair, CRWD presents a mixed profile financially. For instance, while it enjoys strong revenue growth, the market prices CRWD at 80-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 members of Congress prioritize this industry.
The other reason it’s difficult to peg Pelosi as a RBLX shareholder is the volatility. Since the January opener, RBLX dropped 64% of equity value. Since making its first public debut, data from Google Finance reveals that it’s under parity by more than 49%. 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 – the kind of miracle that Democrats need to maintain control of the House – Pelosi’s options will expire worthless. That said, RBLX did gain 5.7% 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.