Now that the 2016 election has come and gone, the unexpected outcome has been a boon for dozens of major companies that are set to benefit from the coming changes in the country. Some are financials, some are materials, some are infrastructure, and some are in services. The reality is that there have been many significant winners based on a Donald Trump expansion.
24/7 Wall St. has compiled several lists, but this latest list is comprised of companies that have not been as widely reported as the primary and secondary issues.
Before jumping blindly or aggressive into chasing recent post-election winners, investors need to understand what is a normal rally and what is an abnormal rally. It is not normal to see big gains or four straight days. That being said, many of these stocks may now be overbought, and investors are going to have to consider these on pullbacks in the days, weeks and months ahead, if they want to be sensible about their money.
We have broken these out by sector in an effort to keep the train of thought similar, looking at the market cap of each and the gains seen over the past week.
Metals and Mining
The metals and mining sector has seen many winners, particularly in steel and copper. Freeport-McMoRan Inc. (NYSE: FCX) is big in copper and shares were last seen down 0.3% at $13.90 late on Monday, which might have been up more had it been less diversified. Shares of Freeport-McMoRan are up 26% in the past five trading days. The stock has a market cap of $18 billion.
Then there are the steel plays. United States Steel Corp. (NYSE: X) was up 7.4% at $27.61 late on Monday. It has a market cap of $4.5 billion. Over the past five trading days the stock has gained 30%. Nucor Corp. (NYSE: NUE) was last seen up 1% at $59.34. Nucor has a total market cap of $18.8 billion. Over the past five trading days the stock has gained 17%.
Just last week we identified which of the top banks might be the best gainers for a Trump presidency. The reality is that some other S&P banks have potentially far more upside, due to regulations easing or to a steeper yield curve helping to boost cash profits.
In the super-regional banks that are not money center banks, Regions Financial Corp. (NYSE: RF) was up 6.3% at $13.22, and Zions Bancorporation (NASDAQ: ZION) was last seen up 3.8% at $38.30. They would both do better with lower regulatory costs and be able to better compete against larger banks when their stress test results had not been as strong.
Shares of Regions Financial are up 18% in the past five trading days, with a market cap of $16.5 billion. Zion’s market cap is $7.8 billion, and over the past five trading days the stock has gained 18%.
Brokerage and Custodial (Finance)
These finally will be more likely to make returns on the cash balances of their clients’ accounts. They also are likely to continue winning if investing and trading activities are going to resume.
E*Trade Financial Corp. (NASDAQ: ETFC) was up another 1.6% at $32.97. It has a total market cap of $9 billion, and over the past five trading days the stock has gained 17%. Shares of Morgan Stanley (NYSE: MS) were last seen at $39.09, up 17% in the past five trading days. The market cap is $74.7 billion.