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Analysts pick 3 stocks that could rock after President Trump's win
“Entering Twitter HQ – let that sink in!” he wrote.
Never one to let a good image go, Musk revived the sink motif after Donald Trump beat Vice President Kamala Harris to become the U.S. president for a second time.
Musk posted a photoshopped image on X of himself entering the Oval Office with the same prop gag bathroom fixture.
“Let that sink in,” he wrote.
Trump had nothing but nice things to say about Musk, who has donated nearly $119 million so far to a political action committee he set up to support Trump, according to Federal Election Commission filings
“Let me tell you, we have a new star,” Trump said. “A star is born — Elon. He’s an amazing guy.”
Musk, who described himself as “Dark MAGA,” said he had gone “all in” on backing Trump. His political action committee hosted a $1 million-a-day giveaway for voters in swing states.
Analyst sees clear competitive advantage for Tesla
“He’s a super genius,” Trump said in his victory speech. “We have to protect our geniuses. We don’t have that many of them.”
Tesla shares surged on Nov. 6 and market observers say a second Trump administration could shut down federal investigations and enforcement actions on the EV maker, particularly around its self-driving-vehicle software.
In addition, Wedbush analyst and Tesla bull Dan Ives predicted that a Trump presidency would hurt the broad electric vehicle industry since current EV subsidies, like the tax credits associated with the Inflation Reduction Act, would be taken away. "However, for Tesla, we see this as a huge positive,” he said.
Trump has been viewed as unfriendly to clean energy stocks. Still, some investors believe that his plan to impose tariffs on foreign goods would help Tesla fend off competition from non-U.S. electric vehicle producers.
Ives said Musk's positive relationship with Trump can give him and Tesla "a clear competitive advantage in a non-EV-subsidy environment."
Stocks took off following Trump's victory, with the Dow Jones Industrial Average leaping nearly 3.6% on November 6.
"Stocks are broadly higher as Republicans are set to win the presidency, the electoral vote, the popular vote, the Senate, and (likely) the House," TheStreet Pro's James "Rev Shark" DePorre wrote. "Pollsters appear to have badly misread the election, and Democrats seem shocked by the harsh rebuke from voters."
DePorre said that the implications of this shift in power will be tremendous, "but the immediate reaction is a substantial surge in optimism and hope."
"Many exciting investment and economic themes will likely develop in the months ahead, and there will be big opportunities for traders and investors," he said.
DePorre said the immediate question is whether the stock market surge will be followed by sustained upside momentum or whether traders will start taking profits into strength.
"Once emotions cool off, there will be a push to identify specific stocks and themes that will benefit from Republican control," he said.
What stocks will benefit from Trump presidency?
DePorre added that the macro picture will be chaotic for a while, "but the best opportunity for investors will likely lie in finding individual stocks that will benefit from the sea change in economic priorities."
"It is going to be a bumpy ride and will require very disciplined trading and investment," he said.
David Doyle, head of economics at Macquarie, said in a research note that key areas of change could flow from trade policy — tariffs — and tighter immigration policy.
"Notably, Trump has significant latitude on both fronts to act without congressional approval," Doyle said. "Fiscal policy may become more stimulative, although here Trump will require congressional cooperation."
But which companies, in particular, stand to gain from a new Trump presidency?
In addition to Tesla, Oppenheimer analyst Colin Rusch sees heavy equipment maker Caterpillar (CAT) and waste-disposal company Republic Services (RSG) as potential winners in the next Trump administration.
The analyst pointed to the likelihood of narrowing government support for EVs and benefits from lower corporate taxes and reshoring, where product manufacturing is moved back to the USA.
Increasing domestic construction would benefit earth-moving equipment demand and waste disposal volumes.
"We expect sharp repositioning across the coverage universe as investors digest the news," Rusch said in a note to investors.
"We expect stocks’ behavior over the medium term will more likely be a function of secular trends impacting global demand and difficulty in rolling back tax policy supporting manufacturing jobs where capital investments have already been made."
Caterpillar shares were up nearly 9% in late trading. The stock is up 41% since the start of 2024 and has climbed 73% from a year ago.
The company missed Wall Street's third-quarter earnings and sales expectations on Oct. 30, with revenue falling 4% from a year ago due to a decline in construction demand across several key regions including North America and Europe.
Republic Services beat analysts' third-quarter earnings forecasts but came up short on revenue. The company's shares have advanced nearly 26% for the year and the stock is up 35% from a year ago.
