Top 10 S&P 500 stock winners since Election Day
Many large U.S. companies have seen their stocks swell 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 provided by S&P Global Market Intelligence, which analyzed returns based on closing prices from Nov. 5 to Nov. 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 President-elect Donald Trump — saw their stocks gain more than 35%, according to S&P Global Market Intelligence.
By contrast, the S&P 500 gained about 2% over the same period.
Investors should be cautious about buying individual stocks based on short-term boosts, said Jeremy Goldberg, a certified financial planner, portfolio manager and research analyst at Professional Advisory Services, Inc., which 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 relying solely on short-term price moves as an investment strategy is risky.»
Investors should understand what's driving the movement and whether the factors pushing up a stock price are sustainable, Goldberg said.
Lofty stock returns were partly driven by Trump administration policy stances expected to benefit certain companies and industries, investment experts said.
Deregulation and a softer view toward mergers and acquisitions are two «key» themes driving bullish sentiment after Trump's win, said Jacob Manoukian, head of U.S. investment strategy at J.P. Morgan Private Bank.
Take the energy sector.
Analysts expect the Trump administration will be more likely to greenlight oil and gas projects, for example.
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