According to Piper Sandler, Wall Street’s upbeat tone since Donald Trump’s return to the White House could have big benefits for the handful of stocks that typically gain when sentiment rises. Stocks soared to record highs after Trump’s victory in early November. Investors had hoped his election would lead to looser regulations, which could lead to deals on Wall Street, as well as lower corporate taxes. The post-election rally has spread to stocks outside the “Magnificent Seven” in recent days. “By many metrics, sentiment is extremely bullish,” Michael Kantrowitz, chief investment strategist and head of portfolio strategy at Piper Sandler, wrote in a Tuesday note. “Investors expect the market to move higher and accordingly Wall Street expects the data to improve (cooling inflation, rising housing activity, rising industrial production, etc.).” In addition to these factors, Kantrowitz cited data showing that recession fears have subsided, and there is hope that oil prices will fall or remain low. Furthermore, interest rates should continue to decline. Against this backdrop, Piper Sandler looked at the stocks most sensitive to bullish sentiment. Their methodology tracks stock performance against various macro variables to find the highest correlations over a five-year period. Here’s a look at some of the stocks that made the list. Of course, correlation is not directly causation. Ride-sharing company 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 for the third quarter. Some analysts have said the company could benefit from looser regulations under the incoming Trump administration, particularly when it comes to its autonomous driving ambitions. UBER YTD Mt. Uber Technologies stock. Garmin is another stock that historically performs well when market sentiment is high, posting gains 62% of the time. Its stock has advanced almost 60% in 2024. The smartwatch and digital map company beat analysts’ estimates for third-quarter revenue and profit late last month. Garmin issued a revenue forecast of around $6.12 billion by 2024. Analysts polled by FactSet had expected $5.98 billion. GRMN YTD Mount Garmin stock has gained nearly 60% in 2024. Other stocks on the list include Applied Materials and Micron Technology.
