Top 10 S&P 500 Stock Gainers Since Election Day

Many major US companies have seen their shares rise since the presidential election.

The top 10 performing stocks in the S&P 500 index saw returns of 18% or more since Election Day, according to data from S&P Global Market Intelligence, which analyzed returns based on closing prices from Nov. 5 to 20.

Two companies: Axon Enterprise (AXON), which provides law enforcement technology, and Tesla (TSLA), the electric vehicle maker led by Elon Musk, an advisor to newly elected President Donald Trump, saw its shares rise more than 35%, according to S&P Global Market Intelligence.

In contrast, the S&P 500 gained about 2% over the same period.

Investors should be careful about buying individual stocks based on short-term upside, says Jeremy Goldberg, a certified financial planner, portfolio manager and research analyst at Professional Advisory Services, Inc., which was ranked No. 37 on CNBC’s annual Financial Advisor 100 list .

“It’s usually a bad idea,” Goldberg said. “Momentum is a powerful force in the market, but it is risky to rely solely on short-term price movements as an investment strategy.”

Investors need to understand what’s driving the move and whether the factors driving the stock price are sustainable, Goldberg said.

The high stock returns were partly the result of the Trump administration’s policy positions that were expected to benefit certain companies and sectors, investment experts said.

Deregulation and a softer view on mergers and acquisitions are two “key” themes driving bullish sentiment following Trump’s victory, said Jacob Manoukian, head of US investment strategy at JP Morgan Private Bank.

Moreover, US regulators are likely to be much less strict in allowing potential mergers during Trump’s second term, experts say.

Companies in the streaming ecosystem – such as Warner Bros. Discovery (WBD), owner of streaming service Max, and Disney+ owner The Walt Disney Co. (DIS) – may favor looser rules around consolidation, they said.

For some stocks, the outperformance was tied to rosy quarterly earnings results or guidance that some companies reported around or after Election Day, experts said.

Many such companies cited artificial intelligence as a growth driver.

Palantir Technologies (PLTR), cited “unprecedented” demand for its AI platform in the third quarter, helping it deliver “exceptionally strong” revenues, says Treasurer and CFO David Glazer told investors November 4.

Similarly, Axon exceeded analyst expectations for its Nov. 7 earnings results resultswith officials touting the “plan for the AI ​​era” and raising earnings expectations, Goldberg said.

According to S&P Global Market Intelligence, shares of Axon and Palantir rose 38% and 22%, respectively, between November 5 and 20.

Some companies benefited from a combination of policies and profits, experts said.

Take Vistra Corp. for example. (VST), an energy supplier. The company’s shares rose 27% after Election Day.

Vistra is in talks with large data centers – or “hyperscalers” – in Texas, Pennsylvania and Ohio to build or upgrade gas and nuclear power plants, said Stacey Doré, Vistra’s Chief Strategy and Sustainability Officer, said on the company’s Q3 earnings call on November 7.

Tech companies are building more and more of these types of data centers to fuel the AI ​​revolution – and need to tap into more and more energy to keep them running.

And then there’s the Elon Musk factor.

Tesla shares received an ‘Elon Musk bounty’ from Trump’s victory, says Goldberg of Professional Advisory Services.

Musk, the CEO of Tesla, was one of Trump’s top campaign backers. Trump asked him to co-lead a new Department of Government Efficiency. Shares of the electric vehicle manufacturer rose 14% the day after the election and almost 30% by the end of the week.

But Tesla shares have additional tailwinds, experts say.

First, Trump wants to end a $7,500 federal tax credit for electric vehicles. Removing that policy is expected to hurt Tesla’s EV rivals.

Tesla has also developed technology for self-driving vehicles. In Tesla’s recent earnings call, Musk said he would use his influence in the Trump administration to create a “federal approval process for autonomous vehicles.”