Election headlines are once again in the driver’s seat, and the latest legal push by the Trump administration around mail-in voting is adding a fresh source of uncertainty just 99 days before the midterms. For investors, sharper swings in sentiment can mean heavier trading volumes and wider price moves across the market. That is where exchange operators and trading platforms often come into focus, as they sit at the center of this activity. This article walks through 3 stocks exposed to the current election-related news, to help you think about where heightened volatility might create opportunities or risks.

Donnelley Financial Solutions (DFIN)

Overview: Donnelley Financial Solutions provides software and tech-enabled services that help public companies, investment funds and their advisers handle complex regulatory filings, investor communications and compliance workflows across multiple regions. Its platforms support everything from SEC and fund reporting to proxy materials, automating document creation, tagging and submission for regulators and shareholders.

Operations: Donnelley Financial Solutions generates revenue primarily from Capital Markets Compliance and Communications Management at US$295.1m and Capital Markets Software Solutions at US$236.7m, with additional contributions from Investment Companies Software Solutions at US$128.8m and Investment Companies Compliance and Communications Management at US$110.8m.

Market Cap: US$1.21b

Donnelley Financial Solutions operates in the flow of regulatory filings and investor communications that tend to increase when political and legal uncertainty rises, which could be relevant as election related court matters proceed. The company is emphasizing higher margin software such as ActiveDisclosure and Arc Suite, and has started rolling out AI powered iXBRL tagging. Analysts are currently forecasting strong earnings growth while revenue growth expectations remain in the low single digits. At the same time, high debt, a recent one off loss of US$91.1m and compressed profit margins mean any setback in capital markets activity or slower software adoption could have a significant impact, so the balance between these opposing factors is an important consideration for Donnelley Financial Solutions.

Donnelley Financial Solutions sits at the intersection of election driven filings, software margins and high leverage, and the real story is how that tension could play out. Get the full picture in the 3 key rewards and 3 important warning signs

Brooks Macdonald Group (LSE:BRK)

Overview: Brooks Macdonald Group is a London based wealth manager that looks after money for individuals, charities, trusts and pension funds, combining financial planning advice with discretionary investment management across bespoke portfolios, model portfolios and multi asset funds.

Operations: Brooks Macdonald Group generates all of its £117.9m in revenue from UK Investment Management, which includes its financial planning activities in the United Kingdom.

Market Cap: £220.9m

Brooks Macdonald Group sits squarely in the flow of client trades and portfolio adjustments that tend to pick up when headlines are noisy. Heightened election related volatility could be a useful backdrop as it continues integrating recent acquisitions and scaling its digital tools. The company has grown its client base and assets under advice through deals, while management is focused on cost control and adviser support. However, margins have been squeezed with net profit at 6.1% and dividends not fully covered by earnings or free cash flow. With the stock trading below one estimate of fair value and analysts expecting earnings growth, the key question for investors is whether higher trading activity and better efficiency can offset yield pressure, funding risk and higher investment spending.

Brooks Macdonald Group’s earnings story and squeezed margins hint at something more beneath the surface, especially with the stock trading below one fair value estimate. See how analysts frame the next chapter in the analyst forecasts for Brooks Macdonald Group

Patria Investments (PAX)

Overview: Patria Investments is a private markets asset manager that raises capital from institutions and other investors to deploy into private equity, infrastructure, credit, real estate and related strategies, primarily across Latin America but with a growing global footprint.

Operations: Patria Investments generates all of its US$399.23m in revenue from Asset Management, earning fees on the funds and mandates it manages.

Market Cap: US$1.72b

Patria Investments sits at the crossroads of rising global demand for alternative assets and investors looking for income and inflation resistant cash flows, with fee earning assets spread across private equity, infrastructure, credit and real estate. Fundraising momentum, including the recent US$670m close for its Secondary Opportunities Fund V, supports the case for higher fee revenues and a richer mix from strategies that investors are prioritizing during periods of political tension and volatility. At the same time, a relatively high P/E multiple, a dividend that is not fully covered by earnings and concentrated Latin American exposure introduce risks if fundraising slows or regional politics turn. The key question for investors is whether Patria’s growing platform can justify those trade offs as market volatility intensifies around elections.

Patria Investments appears to be an accelerating alternatives platform, yet its high P/E and uncovered dividend raise significant questions about how durable that story really is. Walk through the full risk reward trade off in the 3 key rewards and 2 important warning signs.

The three stocks covered here are just a starting point, and the full Election-Related Volatility Beneficiaries (Exchange Operators & Trading Platforms) screener surfaces 40 more companies that sit at the heart of election driven volatility with potentially equally compelling stories. Use Simply Wall St to identify and analyze the specific catalysts, financial health markers and business narratives that matter most so you can focus on the highest conviction opportunities in this corner of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.