The Supreme Court’s decision to preserve birthright citizenship keeps a key pillar of the US workforce framework in place, which matters for labor-intensive sectors that depend on a steady pipeline of employees. Instead of wrestling with an added layer of policy risk, investors can focus more on company level fundamentals and how management handles hiring costs, retention, and growth plans. This article looks at three stocks exposed to this news through their reliance on US labor, exploring why the ruling could be a tailwind for their operating stability and where risks might still leave investors cautious.

McDonald's (MCD)

Overview: McDonald's runs one of the largest global quick service restaurant networks, owning and franchising outlets that sell burgers, chicken, fries, drinks, desserts, and breakfast items under the McDonald's brand. Most locations are operated by franchise partners, while the company focuses on branding, menus, and support.

Operations: McDonald's generates about US$10.9b from the U.S., US$14.0b from International Operated Markets, and US$2.5b from International Developmental Licensed Markets & Corporate.

Market Cap: US$191.7b

McDonald's sits at the intersection of a globally recognised brand and a very labor-intensive US footprint. A stable supply of workers is central to keeping restaurants running efficiently and franchise economics healthy. The company is leaning into digital ordering, AI supported drive thru operations and automation to support margins. Decades of steady dividends and ongoing buybacks show how much cash the model can generate. At the same time, rising labor and beef costs, pressure on lower income diners and a highly competitive US fast food market mean investors still need to watch traffic trends and franchisee profitability closely. The real question is how these strengths and pressures net out for long term returns in a tighter labor market.

McDonald's cash generating franchise model and expansion into digital and automation could be masking an underappreciated shift in its US labor exposure. Get the 6 key rewards and 1 important warning sign

Lowe's Companies (LOW)

Overview: Lowe's Companies is a large US based home improvement retailer that supplies building, repair, remodeling, and décor products and services to professional contractors, homeowners, and renters through its stores, outlets, website, apps, and installation network.

Operations: Lowe's generates about US$84.5b from Retail Home Improvement, with a segment adjustment of roughly US$4.0b, and around US$88.3b of revenue is tied to the United States.

Market Cap: US$124.7b

Lowe's sits at the heart of US housing and construction activity, and the Supreme Court decision preserving birthright citizenship helps keep a key source of domestic labor more predictable for its store staff, Pro contractors, and installation partners. Investors looking at Lowe's are weighing solid dividends, a focus on higher value Pro customers, and new AI tools like Material Lists against high leverage, softer housing demand, and recent earnings that have not kept pace with the broader market. The company is reaffirming guidance and leaning into digital solutions, and a key area of interest for investors is how this labor stability could interact with acquisitions like FBM and ADG and what that means for margins as the housing cycle evolves.

Lowe's focus on higher margin Pro customers and digital tools like Material Lists could be masking a bigger story in its US$88.3b US revenue base. See how the 5 key rewards and 3 important warning signs (1 is major!) might reshape the risk reward picture for Lowe's.

Home Depot (HD)

Overview: Home Depot is a large home improvement retailer that sells building materials, tools, garden supplies, décor, and maintenance products, while also offering installation and equipment rental services to DIY homeowners and a wide range of professional contractors. Customers can buy through its extensive store network and multiple online platforms across the US, Canada, Mexico, and other markets.

Operations: Home Depot generates about US$152.4b from U.S., Canada, and Mexico home improvement operations and roughly US$14.2b from other activities, with revenue concentrated in the United States where it reports US$153.7b in sales versus US$12.9b from outside the country.

Market Cap: US$347.9b

Home Depot gives investors exposure to US housing repair and remodeling through a business that is tightly linked to both skilled tradespeople and frontline store staff. The Supreme Court’s decision to preserve birthright citizenship helps keep a crucial labor pool more predictable, at a time when the company is expanding its Pro ecosystem and integrating acquisitions such as SRS and Mingledorff’s. At the same time, earnings growth has recently been slower, margins have come under pressure, and the balance sheet carries substantial debt. This combination makes the current premium P/E and high forecast ROE more sensitive to any setback in demand or costs. Understanding how this mix of resilient demand drivers, labor stability, and leverage fits together is key to assessing Home Depot’s overall risk and reward profile.

Home Depot’s premium P/E and high forecast ROE could be masking a sharper trade off between leverage and earnings power than the headline story suggests, and the 2 key rewards and 1 important warning sign may reveal the twist investors are missing

The three stocks here are just a starting point, and the full US Domestic Labor-Intensive Sectors screen uncovers 1,145 more companies tied to construction, agriculture, hospitality, and retail in the US Domestic Labor-Intensive Sectors screener. Use Simply Wall St to identify and analyze the specific catalysts, workforce themes, and financial profiles that fit your own highest conviction ideas in this part 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.