News Analyst
The upbeat tone on Wall Street since Donald Trump secured his return to the White House could have outsized benefits for a handful of stocks that typically gain when sentiment is bullish, according to Piper Sandler. Stocks hit record highs immediately after Trump’s victory in early November. Investors had hoped his election would lead to looser regulations, which could trigger a wave of deals on Wall Street, as well as lower corporate taxes. The post-election rally has broadened in recent days toward stocks outside the “Magnificent Seven.” “By many indicators, bullish sentiment is at the extreme,” wrote Michael Kantrowitz, chief investment strategist and head of portfolio strategy at Piper Sandler, in a Tuesday note. “Investors expect the market to rise, and as a result, Wall Street expects the data to improve (cooling inflation, rising real estate activity, rising industrial production, etc.). ” In addition to these factors, Kantrowitz cited data showing that recession fears have eased and oil prices are expected to fall or remain low. Additionally, interest rates are expected to continue to fall. In this context, Piper Sandler has selected the stocks most sensitive to bullish sentiment. Their methodology tracks stock performance against various macroeconomic variables to find the greatest correlations over a five-year period. Here’s a look at some of the stocks that made the list. Of course, correlation does not directly equate to causation. The carpooling company Uber was selected. Shares are up more than 12% in 2024. The company recently beat Wall Street earnings estimates for both revenue and net income in the third quarter. Some analysts have said the company could benefit from looser regulation under the new Trump administration, particularly regarding its autonomous driving ambitions. UBER YTD mountain Action Uber Technologies. Garmin is another stock that historically performs well when market sentiment is high, seeing gains 62% of the time. Its stock is up nearly 60% in 2024. The smartwatch and digital maps company beat analysts’ estimates for third-quarter revenue and profit late last month. Garmin issued higher-than-expected revenue guidance of about $6.12 billion for fiscal 2024. Analysts polled by FactSet had expected $5.98 billion. GRMN YTD Mountain Garmin stock gained nearly 60% in 2024. Other stocks on the list included Applied Materials and Micron Technology.
https://www.cnbc.com/2024/11/21/piper-sandler-highlights-the-stocks-most-likely-to-benefit-from-bullish-market-sentiment.html
