3 Undervalued Stocks to Buy as Trump's Second-Term Odds Improve

Group 1: Market Overview - Former President Trump's improving odds for a second term are influencing investor behavior, with the "Trump trade" being priced into various sectors [1] - Current market volatility has increased due to President Biden's retreat and Vice President Harris' expected nomination, with Trump having a 57% chance of winning, slightly down from 58% [1] Group 2: Halliburton (HAL) - Halliburton is identified as a significant investment opportunity, particularly with a potential Trump victory that could enhance well production and energy demand [3] - The company has a strong financial profile, with a 17.7% operating margin and quarterly earnings growth of 16.2% year-on-year, alongside a free cash flow of $1.89 billion [3] - Analysts project an average price target of $44.55 per share, indicating HAL stock is currently trading about 23% below its fair value [3] Group 3: Steel Dynamics (STLD) - Steel Dynamics is another undervalued stock that could benefit from a potential Trump administration, particularly due to proposed tariffs on imports that would increase demand for domestic steel [5] - The company trades at approximately 7.5 times its estimated EBITDA, which is lower than recent industry transactions, and has a P/E ratio of 10.40 times compared to the industry average of 15.22 times [5] - Recent quarterly results showed revenues of $4.63 billion, exceeding forecasts by 4.3%, and an EPS of $2.72, beating estimates by 2% [5][6] Group 4: Marathon Digital (MARA) - Marathon Digital may benefit from Trump's favorable stance on Bitcoin, which could lead to regulatory changes impacting the company [7] - The recent Supreme Court ruling abolishing the Chevron deference may influence how the SEC classifies assets, potentially opening new avenues for MARA [7] - Despite a projected loss of $0.14 per share for the current quarter, the company's outlook remains strong with an expected EPS of $0.98 per share and a quarterly earnings growth of 184.1% year-on-year [8]