These ‘Trump trades’ are on a roll and analysts see more gains ahead

Some stocks may be poised for more upside after President-elect Donald Trump’s White House victory. Since Trump’s win, the market has already seen some major gains. In fact, the Dow Jones Industrial Average and S & P 500 posted all-time intraday highs during Friday’s trading session, with the blue-chip index topping 44,000 and the broad market index hitting 6,000 for the first time. Stocks in various sectors considered to be beneficiaries also saw gains in the wake of the election, with key names ranging from those in industrials to banks and energy. Those sectors in particular had several winners in the rally following Trump’s 2016 win , and analysts believe gains may likewise be in store this time around – especially for energy. “Based on different approaches to the Energy Transition (ET), we believe a Trump admin would be more favorable to the energy sector and equities,” Wells Fargo analyst Roger Read told clients this week, adding that a second Trump term that “constrains” the ET would benefit refiners, international oil companies (IOCs) and gas exploration and production companies. “We expect a general deregulatory bent from both executive orders and even with legislation – depending on the outcome of the House.” Defense stocks could also see some gains, according to Barclays analyst David Strauss. Even with an increasing federal deficit, he expects the defense budget to continue to increase under a Trump administration, a move that he said should be “broadly supportive” of defense and government services. “We ultimately think a broad government fiscal reform program could be positive for defense, likely freeing up more funding to be put towards weapons development and procurement,” the analyst wrote in a note to clients this week. Semiconductor stocks, which responded favorably to the election outcome, may also continue to benefit, even with Trump’s hardline tariff strategy. The former president has signaled implementing sweeping tariffs, suggesting that he would propose 10% to 20% tariffs on all U.S. imports and tariffs of at least 60% on goods from China. Notably, Wolfe Research analyst Chris Caso believes that these tariffs will likely have a “minimal impact” on semis, given that only a minority of them are shipped to the U.S. He also notes that there likely won’t be much more done in terms of restrictions for those companies tied to artificial intelligence. In light of this, CNBC Pro screened for stocks that have rallied after both of Trump’s election wins and may still see more upside based on the following criteria: Saw at least a 10% gain from Nov. 7, 2016, to the end of that year after Trump’s first win Saw at least a 2% gain on Wednesday after Trump’s second win Are expected to see another 15% gain from here among analysts Below is the full list of stocks that made the cut. In the energy space, Texas-based oil company ConocoPhillips could be a major beneficiary of Trump’s policies, including the expansion of drilling projects . While it hasn’t been a great year for the stock — it’s down nearly 4% year to date — it rose 4% on Wednesday after the election’s result. Looking ahead, analysts expect ConocoPhillips to see more than 20% upside. That would be above the 14.2% rally the stock saw after Trump’s first win from Nov. 7, 2016, until year’s end. On the whole, Wall Street is majorly bullish on the name, as 21 of the 27 analysts covering it have a strong buy or buy rating. The remaining six analysts have taken a neutral stance. Defense company Huntington Ingalls is a standout stock. In Wednesday’s session following Trump’s second win, the industrial name advanced more than 5%, and analysts forecast about 16% upside to go. In 2016, it surged nearly 24% following Trump’s first win until year-end. However, the Street is still largely neutral on the stock. Among the 15 analysts covering it, 11 have a hold rating, while only two have a strong buy or buy rating. The stock has also had a rough year, plummeting about 22%. Chip giant Advanced Micro Devices is a high-beta stock that could also benefit from a possible extension of the bull market and Trump’s tax cuts. The stock rallied more than 2% on Wednesday after Trump’s second win. Analysts – most of whom are bullish, with 43 of the 52 covering it having a strong buy or buy rating – see an average of more than 24% upside ahead. That would follow a monster rally after Trump’s first win, which saw the stock gain almost 63% from Nov. 7, 2016, until the end of that year. While the stock has been marginally higher this year, it’s plunged more than 14% over the past one month.