3 Stocks to Buy if Chris Christie Becomes President

A Chris Christie administration would likely make shareholders at some major U.S. companies very happy.

The two-term New Jersey Governor has called for an array of pro-growth, business-friendly reforms as he bids for the Republican nomination. Christie is in favor of lowering corporate taxes so companies earn more profits, raising the retirement age gradually to 69 starting in 2022 to forestall a Social Security crisis, and cracking down on illegal immigration to protect American jobs.

“The Republicans, notably Christie, will have a priority to grow the economy, and they will do that by reducing regulation and likely overhauling the tax code,” explained Michael Busler, a professor of finance at Stockton University. “policies like that should increase economic growth, corporate profits, and push stock prices higher.”

TheStreet takes a look at three stocks that could receive a lift if Christie wins the presidency.

1. Apple

At a speech detailing his policies in May, Christie said he supports giving American companies a one-time opportunity to repatriate foreign profits at attractive tax rates. Coining it a one-time holiday, Christie proposed a tax rate of 8.75% on repatriated earnings.

Christie has also said he would like to establish what is known as a territorial tax system, which would only tax U.S.-based businesses on their domestic income. Those in favor of a territorial tax system, notably CEOs of U.S.-based multinationals, argue that the current worldwide tax system puts U.S. firms at a competitive disadvantage since they’re forced to also pay U.S. taxes on repatriated profits earned by their overseas operations.

Said Christie on the territorial tax system, “This small change would unleash a wave of investment capital that would be invested in the United States of America to expand companies in the U.S., build factories and warehouses, improve our infrastructure — in short, to create jobs.” Adds Busler on Christie’s tax holiday, “a one-time tax holiday would be a big boom, it will lead to that cash coming back to the U.S. and once it does come back, companies will look for investment opportunities.”

And boy is there a hefty amount of cash sitting overseas for companies to bring back for domestic reinvestment. According to a new study from the Citizens for Tax Justices, Fortune 500 companies are holding more than $2.1 trillion in accumulated profits offshore for tax purposes. Among the biggest individual offshore holders was tech giant Apple (AAPL – Get Report) , with $181 billion abroad.

Apple receiving a serious one-time tax break and participating in a more favorable tax code from a President Christie could yield several things that would support a higher stock price for the iPhone-maker.

The tax holiday would quickly free up a good chunk of change for Apple to repurchase its stock in the public market, which would have the effect of boosting earnings per share by lowering the number of shares outstanding. Apple could also issue a special one-time dividend to enrich shareholders.

As for the territorial tax system, Apple would benefit greatly as about 65% of its annual business is done overseas. The profits from those operations would no longer be taxed at high U.S. rates once repatriated, freeing up money for Apple to to commit to bigger share repurchase plans and a richer dividend payout.

If Apple CEO Tim Cook is not inclined to go the route of stock repurchases or higher dividends, he could head off on a shopping spree for businesses that bring the company into new markets such as cars, or improve upon existing capabilities, such as chip production and design. Either effort would help Apple’s pursuit of higher profits longer term, and likely ignite the stock price.

2. McDonald’s

What’s bad news for minimum wage workers could be good news for McDonald’s (MCD – Get Report) .

In January 2013, Christie vetoed a New Jersey Legislature bill that would have raised the minimum wage there from $7.25 to $8.50 per hour and have future hikes indexed to inflation. Instead, Christie proposed a smaller minimum wage rate increase to be phased in over three years, without linking future wage hikes to inflation.

“The sudden, significant minimum-wage increase in this bill, coupled with automatic raises each year tied to the Unites States consumer price index, will jeopardize the economic recovery we all seek,” Christie said at the time.

Christie sent the bill back to lawmakers, suggesting a $0.25 per hour increase immediately, with an increase of $0.50 in 2014 and a final raise of $0.25 in 2015. New Jersey eventually passed a $1 increase to the minimum wage to $8.25 an hour and automatic cost-of-living increases each year.

In a CNBC interview this past August, Christie softened his stance on minimum wage increases, saying that while he is opposed to raising the federal minimum wage to $15 an hour, he is not completely against an increase to $10.

“We’d have to talk about it,” said Christie, adding, “But $15, it’s going to destroy jobs.” Not everyone agrees, but says Busler, “From a business standpoint, large increases in the minimum wage to $12 or $15 an hour would cause massive unemployment for unskilled workers, and hurt businesses.”

Christie’s more measured approach to lifting minimum wages, especially compared to the Obama Administration, would likely help McDonald’s franchisees who have spent much of 2015 battling worker protests calling for immediate minimum wage hikes to $15 an hour. It would prevent big-time menu price increases by McDonald’s franchisees, which would likely turn off customers unwilling to pay $8 for a Big Mac.

Further, Christie’s stance would mean a delay in the nationwide roll-out of hourly minimum wages of $11-$12, and even higher in some places, that have already been passed in certain states and cities, and are eating into restaurant profits in the process.

In the end, more sales for McDonald’s franchisees means more fees to McDonald’s corporate, and likely a higher stock price.

3. Exxon

At the core of Christie’s energy plan, which consists of building needed infrastructure in energy markets, is the approval and development of the controversial Keystone pipeline. Over the long term, proponents say, the pipeline will strengthen America’s energy security and international competitiveness by delivering crude oil from Canada and North Dakota to refiners and manufacturers in Texas instead of relying on overseas sources.

The proposed pipeline was just dealt a major blow last Friday, however, when President Obama ultimately rejected the building of the pipeline after a seven-year saga. “This pipeline would neither be a silver bullet for the economy, as was promised by some, nor the express lane to climate disaster proclaimed by others,” said Obama.

But nothing dies forever in politics, and if Republican Christie were elected, he could well revive a pipeline that would connect the oil sands of Alberta to the U.S. Gulf of Mexico, one beneficiary would be oil producer Exxon (XOM – Get Report) .

“Exxon has a huge commitment to oil sands,” points out TheStreet contributor and former floor trader at the New York Mercantile Exchange Dan Dicker. In August 2013, Exxon spent $720 million for 226,000 acres of oil sands property about 100 miles to the south of Alberta, Canada, which significantly increased the company’s already robust portfolio in what is known as the Athabasca oil sands.

With Christie approving the pipeline, the energy giant’s sizable refining presence in the Gulf of Mexico stands to see improved refining margins once the flow of cheap Canadian sour crude rises. Given the more favorable outlook for profit margins, Exxon shares would likely rise well in advance of the stronger profits.