The world is more than surprised that Donald Trump has scored an upset victory over rival Hillary Clinton. Many brokerage firms and economists said that a Trump victory would be awful for stocks, with an immediate correction, but the initial 700-point Dow Jones Industrial Average selling in overnight futures was last seen down only 290 points.
UPDATE: This post was edited for closing bell prices as many prices changed for even stronger gains.
24/7 Wall St. has identified several immediate winners from a Donald Trump presidency. These are all surging higher, but there are other winners as well.
Trump is deemed to be positive for gold over uncertainty and positive for defense stocks based on the promise to rebuild America’s military. Then there are the infrastructure stocks, and the metals stocks that will theoretically win if they are treated fairly inside and outside of America. Pharmaceuticals may do well selectively also, if the ability for a Bernie Sanders and Hillary Clinton attack over pricing is off the table. Coal and Energy were not moving as much as some investors might have expected.
There are of course other companies that should be viewed positively, but there are probably too many to count in the wee hours of the morning. There will also be the list of big losers that would have surged under a Clinton victory.
Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) saw its shares slide after Bernie Sanders went after it for price hikes. While many drug or pharmaceutical stocks will be up, Sanders had effectively gone after Ariad over greed when the reality is that it is still losing money. Ariad also has about $1.4 billion worth of negative retained earnings. The stock has a 52-week trading range of $4.37 to $14.34, with a consensus analyst price target of $13.05.
Update for close: closed up 23% at $11.43 on 19.5 million shares.
Caterpillar Inc. (NYSE: CAT) was the first and most obvious winner of our prior Trump-Clinton infrastructure winners. Caterpillar shares were last seen up 2.5% at $86.85, after having risen 1.1% the prior day. Caterpillar has a consensus price target of $80.70 and a 52-week range of $56.36 to $89.87.
Update for close: Caterpillar closed up 7.7% at $91.20 on 18.7 million shares.
Lockheed Martin Corp. (NYSE: LMT) was last seen up 4% at $248.75 after Trump’s win as he has said numerous times that he wants to rebuild America’s military. With recent plane contracts in a take it or leave it mode, there are hopes or assumptions the JSF contract will be more favorable now. Lockheed Martin has a consensus price target of $267.76. The 52-week range is $200.47 to $266.93.
Update for close: Lockheed Martin closed up 5.9% at $253.36 on almost 4 million shares.
Nucor Corp. (NYSE: NUE) was another obvious winner due to steel and infrastructure. Nucor is also considered an advanced metals company, and the company should be prepared to win if tariffs and other protections are afforded to U.S. companies over foreign companies. Nucor has a 52-week range of $33.90 to $57.08. The consensus price target is $52.25.
Update for close: Nucor closed up 12.1% at $57.60 on over 8.7 million shares.