Investing
11 Stocks Surging Higher From Donald Trump's Surprise Victory
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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.
Newmont Mining Corp. (NYSE: NEM) was last seen up 5.5% at $38.05, as this $19 billion Colorado-based gold miner wins from the rising price of gold. And gold is higher based on uncertainty. The consensus price target is $44.76, and the 52-week range is $16.05 to $46.07.
Update for close: Newmont closed up a less aggressive 2.7% at $37.04 on 11.8 million shares.
Pfizer Inc. (NYSE: PFE) is considered a winner here because of several issues, and shares were last seen up 7% at $32.10 on Wednesday morning. Perhaps they can do more overseas, but they were also the more battered versus Merck from highs. Deutsche Bank even noted to expect a health care rally for those that had been beaten up. Pfizer has a 52-week range of $28.25 to $37.39, with a consensus price target of $37.86.
Update for close: Pfizer closed up 6.7% at $32.01 on almost 113 million shares.
Raytheon Co. (NYSE: RTN) was last seen trading up 2.6% at $140.00, based upon Trump’s military spending commitment. Raytheon is a key winner if missile purchase and munitions are ordered. The stock has a 52-week range of $115.73 to $143.39 and a consensus price target of $155.63.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) was last seen trading up over 5% at $40.76, based on the price collusion fears inside of the generic industry. Teva is the largest generic drug maker, and generic drugs should have done well under either candidate prior to the price hike woes. Shares had been hit hard ahead of the election, but the 52-week range is $37.82 to $66.55.
United States Steel Corp. (NYSE: X) is surging as it is a top dog in U.S. steel (even if it operates internationally too). International price protections here and tariffs should benefit the company. U.S. Steel shares were indicated up 9.7% at $23.00. The 52-week range is $6.15 to $27.64, and the prior consensus analyst target was $20.10.
VanEck Vectors Russia ETF (NYSEMKT: RSX) is of course not a stock but an exchange traded fund. This one covers Russia, and we have all heard the ties and innuendos over the past few weeks. Now Putin is asking for more full and immediate return of relations. The VanEck Vectors Russia ETF was last seen up 1.6% at $18.63, in a 52-week range of $11.81 to $19.34.
Update for close: closed up 2.4% at $18.78 on 16.3 million shares.
Corrections Corp. of America (NYSE: CXW) is going to be a serious winner here, with less and less pressure on for-profit prisons. The company is considered the bogeyman in the for-profit prison sector. Its shares had been at $14.19 prior to this move (versus a 52-week range of $12.99 to $35.05) as Clinton wanted to further limit for-profit prison use. Shares were last seen trading up 22.6% at $17.40, and that makes its market cap roughly $2 billion.
Update for close: Corrections Corp. closed up 42.8% at $20.27 on 22.8 million shares.
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