Markets

These stocks could have the most to lose if a progressive Democratic agenda takes hold in 2020

Key Points
  • Investors are looking at the potential impact of a progressive political agenda on the stock market.
  • J.P. Morgan compiled a list of firms that would be most affected by progressive policy initiatives.
2020 presidential candidates Pete Buttigieg, mayor of South Bend, from left, Senator Bernie Sanders, an independent from Vermont, Former U.S. Vice President Joe Biden, and Senator Elizabeth Warren, a Democrat from Massachusetts, stand on stage during the Democratic presidential candidate debate in Houston, Texas, U.S., on Thursday, Sept. 12, 2019.
Bloomberg | Bloomberg | Getty Images

Despite the fact that the 2020 presidential election is more than a year away, investors are looking at the potential impact of a progressive political agenda on the stock market.

J.P. Morgan, in a new report, compiled a list of firms that would be most affected by progressive policy initiatives, in areas like anti-trust, financial regulation, climate change, health-care reform and minimum wage.

The company expects these select stocks to under-perform relative to the market if a progressive Democratic candidate is elected.

2020 candidates Joe Biden, the former vice president, Sen. Bernie Sanders, I-Vt., and Sen. Elizabeth Warren, D-Mass., are leading in national polls. There are 19 Democratic presidential candidates still in the race. Betting markets provide Trump with a slight advantage, though the top Democratic contenders are ahead of him in most national polling. 

Here are some of the stocks J.P. Morgan expects would under-perform:

Energy:

Chevron

Exxon Mobil

Industrial:

Lockheed Martin

Northrop Grumman

Consumer discretion:

Gap

Papa John's

Consumer staples:

Walgreens Boots Alliance Inc.

Healthcare:

CVS Health

Cigna

Financials:

Bank of America

Wells Fargo

Information Technology:

Booz Allen Hamilton Holding

Communication Services:

Alphabet

Facebook

Real Estate:

CoreCivic Inc.

GEO Group Inc.

- Michael Bloom contributed to this report