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Stocks that may get a State of the Union boost

Traders on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters

Among the many areas President Barack Obama intends to address during his State of the Union on Tuesday, political and financial analysts recommend housing and materials stocks as the best sectors to trade.

Homebuilders "could be big winners," said Larry McDonald, a macro strategist at Societe Generale.

One bullish factor, he said, is the close relationship between Mel Watt, the head of the Federal Housing Finance Agency, Valerie Jarrett, advisor to the White House chief of staff, and Obama's family. The connection paves the way for some action on affordable housing, which McDonald said is still far from stated goals.