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5 Stocks That Rose More Than 100% in the Trump Era

Swarup Gupta

Of all the presidents to grace the White House, Donald Trump possibly stands out for his eagerness to claim credit for the stock market surge during his tenure. Now, as he seeks a second term in office, he is likely to base his campaign on these very successes, per recent reports.

Whether Trump can truly take the credit for a strong economy and equity markets is a matter of debate. What is for certain is that the economy remains robust despite the slowdown whispers.

Further, equity markets have recovered from the slowdown they suffered last year and are continuing largely unhindered on their Bull Run. This is why it makes sense to invest in stocks that have gained exponentially during the Trump era.

Trump Era Witnesses Tremendous Market Surge

The tremendous surge of market indexes in the Trump era is a recorded fact. When Trump ascended to the presidency on Nov 8, 2016, the Dow was hovering around the 18,000 mark.

Since then it has surged more than 35% as has the S&P 500. Gains for the Nasdaq have been even more spectacular, with the tech-heavy index notching up a stunning 45% surge during this period.

A market slump of sorts did take place in late 2018, ending with the most disastrous ever performance on Christmas Eve. This was largely attributable to concerns about global trade and the hawkish approach of the Fed at that time.

But benchmarks have staged a strong recovery since then with the Dow, S&P 500 and Nasdaq each up more than 18% from their December lows. This is largely attributable to speculation that the Fed will freeze rate hikes for the year. But an impending U.S.-China trade deal may have been an even greater catalyst for recent gains.

Trade Deal Crucial for Continuing Equity Market Successes

It comes as no surprise then that Trump is aggressively pursuing a trade deal with China in hopes of lifting equity markets ahead of his reelection bid. On Mar 6, CNBC cited sources to reveal that the U.S. President is looking to hasten the deal-making process in order to boost markets.

The report follows another by Bloomberg, which claimed that Trump knows that the process of trade negotiations has boosted markets significantly in recent times. This has helped to extend the duration of a rally, which is on the verge of setting a new record.

On Wednesday, the U.S. President said trade negotiations with China were “moving along.” Per Bloomberg, the President is likely concerned that the inability to seal a trade deal will take the wind out of the current rally. Stocks have been listless recently as news on the progress of trade negotiations grows scarce.

Our Choices

President Trump is acutely aware that his chances of a reelection are hugely dependent on the state of equity markets. This is why he will likely ensure that a trade deal of some nature is sealed with China. This would go a long way toward maintaining the momentum of stocks, which have surged during his tenure.

Investing in stocks that have surged during the Trump presidency makes good sense. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has gained 100% during the Trump era, have a Zacks Rank #1 (Strong Buy) and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Anthem, Inc. ANTM is one of the largest publicly traded managed care organizations in terms of membership.

Anthem’s projected growth rate for the current year is 20.4%. The Zacks Consensus Estimate for the current year has improved 0.03% over the past 30 days.

Deckers Outdoor Corporation DECK is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.

Deckers Outdoor’s projected growth rate for the current year is 38.1%.

Heidrick & Struggles International, Inc. HSII is a provider of leadership consulting, culture shaping and senior-level executive search services.

Heidrick & Struggles’ projected growth rate for the current year is 3%.The Zacks Consensus Estimate for the current year has improved 6.6% over the past 30 days.

Molina Healthcare, Inc. MOH is a multi-state managed care organization, participating exclusively in government-sponsored healthcare programs.

Molina Healthcare’s Zacks Consensus Estimate for the current year has improved 5.7% over the past 30 days.

Insperity, Inc. NSP is an integrated human resources and business solutions provider.

Insperity’s projected growth rate for the current year is 23%.The Zacks Consensus Estimate for the current year has improved 7.5% over the past 30 days.

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Anthem, Inc. (ANTM) : Free Stock Analysis Report
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