2016 was a year full of surprises and uncertainty with the markets facing volatility in the face of economic and political pressure. However, the volatility that was experienced in the run-up to the elections has subsided somewhat. As we know, key indices reacted favorably to the surprise win of Donald Trump with some sectors in particular clocking major gains.

Although the market is relatively stable now, a certain element of uncertainty still remains regarding the extent to which President-elect Trump will be able to implement the promises made by him during elections. Moreover, analysts and market watchers expect a Fed rate hike next week while the commencement of the Brexit process, scheduled to start by Mar 2017, will keep the markets volatile.
 
In such a scenario, it makes sense to diversify your portfolio by investing in some blue-chip stocks — these large-cap stocks (market cap of more than $5 billion) are companies that have a proven track record and represent a certain level of financial strength, resilience and stability.

While selecting these stocks, we have also focused on sectors that stand to benefit under a Trump presidency assuming he is able to deliver on his promises.

Play It Safe with These Large-Cap Stocks

Booz Allen Hamilton Holding Corporation (BAH – Free Report) : McLean, VA-based Booz Allen Hamilton Holding Corporation provides management and technology, consulting, and engineering services to the U.S. and international governments, major corporations, and not-for-profit organizations. The company’s second quarter fiscal 2017 results were better-than-expected with both earnings and revenues surpassing expectations. Following the release of second quarter fiscal 2017 results, BAH raised the lower end of its previously issued guidance range and now expects revenues to grow in the range of 3-5% and earnings in the range of $1.68 to $1.75 per share. The company had previously guided towards revenue growth of 2-5% and earnings per share of $1.65 to $1.75. The Zacks Rank #2 stock has a VGM score of A and has been witnessing upward revisions in earnings estimates over the last 30 days for both fiscal 2017 and 2018.

Government services firms like BAH are expected to benefit from the Trump administration in the long run once favorable policies are in place including potential tax cuts and increased government spending.  A look at BAH’s performance shows that the company has outperformed the Zacks-categorized Government Services industry with the company gaining 21.6% versus the industry gain of 13.6%. Shares have been on an upswing ever since election results were announced.