Stocks in the Wake of Trump’s Election Win: Analyzing Market Reactions

The stock market has demonstrated remarkable resilience and strength since Donald Trump’s election win this month. Initial surges of approximately 4% have been attributed to optimistic projections surrounding lower tax rates, deregulation, and an anticipated boom in corporate mergers. While larger stocks like Tesla and cryptocurrencies like bitcoin have taken center stage, a number of under-the-radar stocks have also experienced significant gains driven by the changing political landscape and President-elect Trump’s cabinet picks.

Fox Corporation

• Ticker: FOX/FOXA
• Market Valuation: $20.3 billion
• Gain Since Election Day: 8%

Fox Corporation, home to the popular Fox News channel, has seen its ratings soar post-election. In stark contrast, competitors like CNN and MSNBC have experienced significant declines in viewership.

Fannie Mae and Freddie Mac

• Ticker: FNMA and FMCC
• Market Valuation: $3.9 billion and $2.1 billion
• Gain Since Election Day: 132% and 152%

The preferred stocks of these government-sponsored enterprises witnessed immense gains as investors speculate the second Trump term could finally lead to the long-discussed privatization of Fannie Mae and Freddie Mac. These stocks represent a potential for return on investment that many hope will materialize now that Trump has resumed office.

Henry Schein

• Ticker: HSIC
• Market Valuation: $9.2 billion
• Gain Since Election Day: 2%

Despite only a modest increase, Henry Schein has seen its stock rise 11% since Trump’s appointment of Robert F. Kennedy Jr. to lead the Human Health and Services Department. Investors are banking that proposals to remove fluoride from water supplies could lead to an increased demand for dental services.

Sallie Mae

• Ticker: SLM
• Market Valuation: $5.1 billion
• Gain Since Election Day: 12%

As the administrator of student loans, Sallie Mae’s stock is benefitting from the anticipation that Biden’s recent student loan forgiveness measures could be short-lived, thus revitalizing the student loan market under Trump.

Geo Group and CoreCivic

• Ticker: GEO and CXW
• Market Valuation: $3.9 billion and $2.4 billion
• Gain Since Election Day: 95% and 62%

These companies specialize in private correctional facilities and may see increased utilization under Trump’s potential immigration policies which could require mass detentions.

Cameco

• Ticker: CCJ
• Market Valuation: $34.6 billion
• Gain Since Election Day: 16%

The energy sector’s support for nuclear power is set to grow under the Trump administration, presenting a significant opportunity for Cameco, which supplies uranium for power plants.

Grand Canyon Education

• Ticker: LOPE
• Market Valuation: $4.7 billion
• Gain Since Election Day: 17%

The for-profit education sector could benefit significantly under Trump, particularly as fears regarding restrictive regulations may be eased.

Regional Bank Stocks

• Ticker: KRE ETF
• Gain Since Election Day: 11%

The promise of reduced financial sector regulations could spell opportunity for regional banks, potentially leading to expanded lending practices and greater profitability.

Conclusion

In conclusion, the stock market’s positive trajectory since Trump’s victory provides a refreshing outlook for under-the-radar stocks, which appear poised to benefit from the political shift. Investors looking to capitalize on both traditional and emerging sectors should keep a keen eye on these companies, as they may yield substantial returns in a pro-business climate. The results of this election serve as a reminder that economic forecasts can shift dramatically under a different administration, especially when embracing principles associated with conservative economic policies.