Piper Sandler highlights the stocks most likely to benefit from bullish market sentiment

Wall Street’s optimistic tone since Donald Trump secured a 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 soared to record highs immediately after Trump’s victory in early November. Investors hoped that his election would lead to looser regulations, which could trigger a spree of dealmaking on Wall Street, as well as lower corporate taxes. The postelection rally has broadened out in recent days toward stocks outside of the “Magnificent Seven.” “By many metrics, bullish sentiment is at an extreme,” Michael Kantrowitz, Piper Sandler’s chief investment strategist and head of portfolio strategy, wrote in a Tuesday note. “Investors expect the market to climb higher and accordingly, Wall Street expects the data to improve (cooling inflation, rising housing activity, rising industrial production, etc.).” In addition to those factors, Kantrowitz cited data that showed that recession fears have eased, and there is an expectation that oil prices will fall or remain low. Also, interest rates should continue to drift lower. Against this backdrop, Piper Sandler screened for stocks that are most sensitive to bullish sentiment. Their methodology tracks the performance of stocks against various macro variables to find the greatest correlations over a five-year period. Here’s a look at some of the stocks that made the list. To be sure, correlation does not directly amount to causation. Ridesharing firm Uber made the cut. Shares have advanced more than 12% in 2024. The company recently beat Wall Street’s earnings estimates on the top and bottom line in the third quarter . Some analysts have said the company could benefit from looser regulations under the incoming Trump administration, specifically as it relates to its autonomous driving ambitions . UBER YTD mountain Uber Technologies stock. Garmin is another stock that historically performs well when market sentiment is high, registering gains 62% of the time. Its stock has advanced nearly 60% in 2024. The smartwatch and digital map company surpassed analyst estimates for revenue and earnings in the third-quarter late last month. Garmin issued a higher-than-expected revenue outlook of roughly $6.12 billion for fiscal 2024. Analysts polled by FactSet were expecting $5.98 billion. GRMN YTD mountain Garmin stock has gained nearly 60% in 2024. Other stocks on the list included Applied Materials and Micron Technology .