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5 Stocks Booming Thanks to the Midterm Elections

5 Stocks Booming Thanks to the Midterm Elections
  • Midterm elections take place Nov. 6.

  • You can review your investing strategy to take advantage of the increased spending in midterm election-related industries.

  • Insperity and Facebook are among the companies making money thanks to the elections.

Midterm elections take place on Nov. 6, and campaigns aren’t holding back. Democrats are putting their all into regaining control of Congress, and Republicans are working tirelessly to make sure that doesn’t happen.

The 2018 midterms could be the most expensive election cycle in history, according to the Center for Responsive Politics (CRP). For this to happen, total spending would have to surpass the $3.8 billion record set during the 2014 midterm elections, which unseated the previous $3.6 billion record set during the 2010 midterm cycle, according to the CRP. Data from the Center reveals that total spending for House and Senate races is at nearly $1.8 billion as of Sept. 20, 2018.

Running a campaign takes money, and some businesses and industries in particular are profiting from the midterm elections. Here’s a look at who’s making money as the midterms approach.

Click to read more about seven stocks that have soared under Trump’s presidency.

5 Companies Benefiting From Election Business

Many companies are seriously cashing in during the 2018 midterm election cycle. The CRP maintains a list of top vendors, and several are publicly traded corporations.

Before the races really heat up, here’s a look at five stocks you might want to consider investing in. Check out the amount of reported election payments they’ve received as of Aug. 21, 2018, based on electronically available Federal Election Commission data compiled by the CRP:

  • Automatic Data Processing Inc. (ADP): Midterm elections have been quite lucrative for ADP, as the cloud-based human resources management software and services company has garnered payments totaling nearly $32 million, according to the CRP.

  • Paychex Inc. (PAYX): A company that provides payroll, human resources and benefits services for small to midsize organizations, Paychex Inc. has received $19.8 million in election payments, per the CRP.

  • Insperity (NSP): HR services provider Insperity has earned $8.2 million in election funds, according to the CRP.

  • Facebook (FB): The social networking site has garnered $6.4 million in election payments, ranking No. 4 on the CRP’s list of top online media vendors.

  • Amazon (AMZN): Positioned at No. 49 of 50 on the list of top Democrat vendors, compiled by the CRP, Amazon has made $3.8 million off the elections process so far.

Find Out: How Confident Are Americans in the Country’s Financial Future?

5 Industries Making Money Off Election Business

Some industries really benefit during election years, making them potential investment opportunities, including the following:

  • Media: Companies ranging from advertising agencies and media buyers to online platforms and television networks can turn quite a profit during election season.

  • Human resource services providers: Running a campaign requires a lot of people and staffers need to get paid.

  • Political consultants: Devising a winning political campaign isn’t easy, so candidates rely on skilled political consultants to steer their strategy.

  • Publishing: Getting a candidate’s name out there typically involves a lot of paper — such as fliers, signs, letters, bumper stickers — requiring the use of publishing companies.

  • Polling: It’s crucial for candidates to gauge constituents’ opinions, so polling companies are used heavily during election periods.

Don’t Miss: 2020 Presidential Candidate Hopefuls

If you’re looking to invest in companies doing big election business, conduct research to see which organizations are involved in political work. The CRP’s lists of top vendors can be a good place to start, as you’re able to see several different breakdowns. That doesn’t mean these industries always do well during election season, but the nature of their work during demanding election cycles makes them more likely to see an uptick in business.

Click through to read more about how political conditions affect the stock market.

More on Investing and Stocks

This article originally appeared on GOBankingRates.com: 5 Stocks Booming Thanks to the Midterm Elections

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