As the results of one of the most hotly contested elections in the United States come in, investors are scrambling to build positions on the most likely outcome. But Shelby McFaddin, senior analyst at Motley Fool Asset Management, is looking beyond the end result. She expects volatility this week, but “limited impact on long-term investing as the market waits for real policy impact.” She told CNBC’s “Street Signs Asia” on Nov. 5, ahead of the final results. Any bets are “pure speculation.” A worrying question. Slatestone Wealth’s Kenny Polcari agreed that politics “won’t price stocks over the long term.” “(The election) creates short-term chaos, which creates opportunities for long-term investors. But don’t build your portfolio based on who you think will inhabit the White House,” chief market strategist at U.S.-based wealth management firm Nov. 5 Japan told CNBC’s “Asia Roadmap.” On the other hand, a Republican or Democratic sweep could lead to significant changes in spending or tax policy. ‘Success Story’ Looking back on the election results, McFaddin listed three stocks she likes right now, including shipping and package delivery giant United Parcel Service. The analyst called the company “very interesting” and said it was “a bit of a success story” with earnings and revenue rebounding. UPS third-quarter results beat Wall Street expectations, with freight volumes rebounding after a post-lockdown slump. The company also raised its full-year operating margin forecast to 9.6%. In addition to improved financials, McFaddin also likes UPS’s management team, which “does everything they can to improve profits, even though they really can’t control everything about revenue.” “This is one of our favorite management stories… … It’s not necessarily the fastest growing company in the world, but it’s a really solid company with really strong management,” she added. UPS shares are down about 14.9% year to date, and analysts are mixed on the company. About 15 have buy or overweight ratings, 14 have hold or sell ratings and three have sell ratings, FactSet data shows. Analysts have an average price target on the stock of $149.96, representing an upside potential of 12%. CRH Building materials company CRH is another “really interesting pick” for McFaddin, who expects the company to benefit from increased infrastructure spending over the next decade. She also believes the company will benefit from laying asphalt and concrete to build communities as more people move out of coastal areas. McFaddin added in an interview with CNBC: “Recent weather disasters have further highlighted the urgent need to rebuild infrastructure and underscore the importance of investing in resilient infrastructure over the next decade.” So far this year, CRH shares are up about 40%. Of the 25 analysts covering the stock, 21 have a buy or overweight rating, three have a hold rating and one has an underweight rating, according to FactSet data. Analysts have an average price target on the stock of $104.02, representing an upside potential of 7.3%. Mastercard McFaddin also has his eye on payments giant Mastercard. “Mastercard is critical to payments infrastructure… and major players have flexibility amid tough market conditions,” the analyst wrote in a note to CNBC. McFaddin also likes that the stock is “well insulated” from weak consumer spending, especially on big-ticket items. She made the bullish call even though the stock is currently valued at about 35 times forward earnings. Mastercard shares are up about 18.5% so far this year. Of the 39 analysts covering the stock, 31 have buy or overweight ratings, while the remaining eight have hold ratings, according to FactSet data. Analysts’ average price target for the stock is $558.19, which represents an upside potential of 10.4%. — CNBC’s Sawdah
