Please ensure Javascript is enabled for purposes of website accessibility

3 Stocks That Don't Need President Trump to Do Well

By Brian Feroldi – Nov 12, 2016 at 9:13AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The country's near-term future may be uncertain, but these three companies should continue to do well in almost any political environment.

In a stunning upset, America has elected Donald Trump the 45th president of the United States.

The news caught the markets off guard, sending stock futures plummeting overnight. They've since recovered, but many investors are left wondering what a Trump presidency means for the economy.

Image source: Getty Images.

In times like these, I turn to business leaders whom I greatly admire for clues on how I should think about the world moving forward. Here's a quote from Jeff Bezos,'s CEO, that I think investors can use as inspiration:

I very frequently get the question: "What's going to change in the next 10 years?" And that is a very interesting question; it's a very common one. I almost never get the question: "What's not going to change in the next 10 years?" And I submit to you that that second question is actually the more important of the two -- because you can build a business strategy around the things that are stable in time.

Applying this quote to the investing world, I asked myself what trends are likely to not going change over the next four years, even with Trump taking over the White House. Here are three that came to mind.

Trash collection will still be needed

Like it or not, Americans are still going to produce mountains of trash over the next four years. That means we're going to remain heavily reliant on companies that haul garbage to keep our streets clean, so the leaders in the waste-hauling space are likely to be unaffected by the political shift.

That fact bodes well for Waste Management (WM 2.86%), the largest trash hauler in the country. This company counts more than 21 million customers throughout North America, which gives it huge scale over its rivals. Better yet, trash collection is a monopoly-like business, so the company should have no problem continuing its long history of cranking out cash flow and rewarding long-term shareholders.

WM Chart

WM data by YCharts

Consumers will still pay up for a premium movie experience

The hit-driven nature of the movie business will always ebb and flow, but consumer demand for a high-quality theater experience has consistently grown for years on end. That's greatly benefiting IMAX (IMAX 0.32%), as movie theater owners have been in a mad dash to install the company's supersized screens in their cinemas, in an effort to offer a better entertainment experience.

Image source: Getty Images.

We saw this trend play out yet again in IMAX's most recent quarter. The company signed a record 162 new theater systems during the period, which was more than it sold in all of 2015. That allowed the company's backlog to grow substantially even though its installation total remains elevated. 

While IMAX's results will always be lumpy from quarter to quarter, as long as demand for the company's screens remains strong, I have high confidence that shareholders will benefit over the long term.

The shift to plastic remains intact

While credit and debit cards have existed for decades, roughly 85% of global transactions still occur using cash or check. That number has been slowly moving lower over time, as consumers and merchants alike warm up to the idea of using electronic payments, which speaks volumes about the growth opportunity ahead for Visa (V -0.42%).

What's brilliant about Visa's business is that the company earns a small commission for every transaction that occurs on its network. With trillions of dollars being processed on the company's network each year -- yes, trillions -- those small commission add up fast. This year, Visa is expected to pull in more than $17 billion in annual revenue, up double digits over the prior year. 

Image source: Getty Images.

While the company's numbers are already incredible, it is not hard to see why they will continue to steadily march higher over time. After all, credit cards are secure and easy to use. Plus, the last time I checked, you can't pay for things online using cash. That's why I'm confident that Visa's long-term growth prospects remain intact, despite Tuesday's election results.

Brian Feroldi owns shares of, IMAX, and Visa. Like this article? Follow him on Twitter where he goes by the handle @Longtermmindset or connect with him on LinkedIn to see more articles like this.

The Motley Fool owns shares of and recommends, IMAX, and Visa. The Motley Fool owns shares of Waste Management. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.