Top 10 S&P 500 stock winners since Election Day

Many ample U.S. companies person seen their stocks swell since the statesmanlike election.

The apical 10 performing stocks successful the S&P 500 index saw returns of 18% oregon much since Election Day, according to information provided by S&P Global Market Intelligence, which analyzed returns based connected closing prices from Nov. 5 to Nov. 20.

Two companies — Axon Enterprise (AXON), which provides law-enforcement technology, and Tesla (TSLA), the electric-vehicle shaper led by Elon Musk, an advisor to President-elect Donald Trump — saw their stocks summation much than 35%, according to S&P Global Market Intelligence.

By contrast, the S&P 500 gained astir 2% implicit the aforesaid period.

Investors should beryllium cautious astir buying idiosyncratic stocks based connected short-term boosts, said Jeremy Goldberg, a certified fiscal planner, portfolio manager and probe expert astatine Professional Advisory Services, Inc., which ranked No. 37 connected CNBC's yearly Financial Advisor 100 list.

"It's usually a atrocious idea," Goldberg said. "Momentum is simply a almighty unit successful the market, but relying solely connected short-term terms moves arsenic an concern strategy is risky."

Investors should recognize what's driving the question and whether the factors pushing up a banal terms are sustainable, Goldberg said.

Lofty banal returns were partially driven by Trump medication argumentation stances expected to payment definite companies and industries, concern experts said.

Deregulation and a softer presumption toward mergers and acquisitions are 2 "key" themes driving bullish sentiment aft Trump's win, said Jacob Manoukian, caput of U.S. concern strategy astatine J.P. Morgan Private Bank.

Additionally, U.S. regulators volition apt beryllium overmuch little stringent astir allowing imaginable mergers during Trump's 2nd term, experts said.

Companies successful the streaming ecosystem — similar Warner Bros. Discovery (WBD), which owns the Max streaming service, and Disney+ proprietor The Walt Disney Co. (DIS) — whitethorn beryllium benefactors of looser rules astir consolidation, they said.

For immoderate stocks, outperformance was tied to rosy quarterly net results oregon guidance that immoderate companies reported astir oregon aft Election Day, experts said.

Many specified businesses cited artificial quality arsenic a maturation driver.

For example, Palantir Technologies (PLTR), cited "unprecedented" request for its AI level successful the 3rd quarter, helping present "exceptionally strong" earnings, Treasurer and CFO David Glazer told investors Nov. 4.

Likewise, Axon bushed analysts' estimates successful its Nov. 7 net results, with officials touting its "AI epoch plan" and raising net guidance, Goldberg said.

Axon and Palantir stocks were up 38% and 22%, respectively, from Nov. 5 to Nov. 20, according to S&P Global Market Intelligence.

Some companies benefited from a operation of argumentation and earnings, experts said.

Take Vistra Corp. (VST), an vigor provider, for example. The company's banal jumped 27% aft Election Day.

Vistra is successful talks with ample information centers — oregon "hyperscalers" — successful Texas, Pennsylvania and Ohio to physique oregon upgrade state and atomic plants, Stacey Doré, Vistra's main strategy and sustainability officer, said connected the company's Q3 net telephone Nov. 7.

Tech companies are building much and much specified information centers to substance the AI gyration — and request to root expanding amounts of vigor to tally them.

And past there's the Elon Musk factor.

Tesla's banal got an "Elon Musk premium" from Trump's victory, said Goldberg of Professional Advisory Services.

Musk, Tesla's CEO, was 1 of Trump's top run backers. Trump tapped him to co-lead a caller Department of Government Efficiency. Shares of the electric-vehicle shaper soared 14% the time aft the predetermination and almost 30% by week's end.

But Tesla banal has further tailwinds, experts said.

For one, Trump wants to end a $7,500 national taxation recognition for EVs. Scrapping that argumentation is expected to hurt Tesla's EV rivals.

Tesla has besides been processing exertion for driverless vehicles. In Tesla's caller net call, Musk said he'd usage his influence successful Trump's medication to found a "federal support process for autonomous vehicles."