With the government set to reopen, it's time to look at savvy stocks you should be buying now. The longest government shutdown in our nation's history is likely to end at some point this week. You can bet that institutional investors are already looking at their watchlists closely to see how to profit from this event.
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Here's a surprise. They may not be looking at the artificial intelligence (AI) trade. In fact, there's some evidence that the "smart money" is looking for opportunities to get in front of an end-of-the-year rally.
For that to happen, it will mean a broadening of the market beyond the handful of tech stocks that have carried the market higher. In fact, I have three ideas for you that don't involve the tech sector at all. Yet, each of these stocks has one or more catalysts from the government reopening that could make buying these savvy stocks a very profitable move.
Savvy Stocks to Buy #1: Delta Air Lines
You can't say for sure, but it's likely that the cancellation of flights across the country was a key catalyst to end the government shutdown. Analysts remind travelers that the government reopening won't be a quick fix to reset air traffic. However, it's likely that things will be back to normal by the December holiday crunch.
DAL stock is flat in the 30 days ending November 10, but is still down about 4.3% in 2025. That puts it at a discount of more than 23% to its consensus price target of $71.54. And at a price-to-earnings (P/E) ratio of around 8.25x, DAL stock is trading at a discount to its historical average.
Like many airlines, Delta is still working through a considerable amount of debt of around $22 billion. That resulted in the airline paying $701 million in interest expense alone in the last 12 months. However, since the Federal Reserve is expected to continue lowering interest rates, there is the possibility for Delta to refinance a portion of that debt at more favorable terms.
Savvy Stocks to Buy #2: Newmont Corp.
Gold continues to be one of the best trades in 2025 and Newmont Corp. (NYSE: NEM) is a best-in-class mining stock with plenty of upside.
The spot price of gold took a much-needed breather in the last two weeks, falling under $4,000. But this is likely to be just a pause in a bullish pattern that is supported by the government reopening. Several conditions exist to suggest gold will continue to rise:
The federal government is still running annual deficits that come in at around 7% of GDP.
The Federal Reserve is at the beginning of a rate-cutting cycle that is likely to accelerate if the labor market remains soft or gets worse.
Central banks continue to buy gold at historic levels as part of the debasement trade against the U.S. dollar.
Newmont stock dropped more than 20% from its high in mid-October. But it's been moving steadily higher. At around $87 per share as of this writing, it's right around its consensus price target. But several analysts have put the price of NEM stock at over $100, with Bank of America (NYSE: BAC) coming in at $115.
At around 13x earnings, NEM stock is expensive compared to its historic average. But this isn't an ordinary time. Earnings are expected to jump over 10% in the next 12 months, which would support a premium for the stock.
Savvy Stocks to Buy #3: Walmart
Walmart Inc. (NYSE: WMT) is last, but certainly not least on this list of savvy stocks to buy when the government reopens. The company has bucked the bearish sentiment that many retailers have noted. Its year-over-year numbers are flat, but for many retailers in 2025, that's a win.
Walmart has noted that the lower-income consumer, which is its core market, is under pressure. However, the company has also seen an increase in traffic from higher net worth consumers who are shopping at Walmart to make their discretionary dollars go further.
That's not likely to change as inflation is expected to remain around its current level of 3%, at best, and possibly move higher as the impact of interest rate cuts works its way through the economy. Simply put, Walmart sells what consumers need, not what they want.
That makes the stock a buy even at a P/E ratio of around 38x, which is a premium to its historic average. WMT stock dipped about 10% from its 52-week high in October. But all signs point to the stock moving beyond that level, and possibly very quickly.
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