5 Top-Ranked Winning Stocks From Trump's Year One
Zacks Investment Research | Nov 07, 2017 08:50PM ET
Even as Donald Trump completes a year in office, it is increasingly difficult to believe that his ascension on election night was initially greeted with severe trepidation. At first, Trump’s advance was followed by a 900-point slump in the Dow. But on the first day of the Trump era, the Dow gained 257 points, hitting a new all-time high, a feat which it has bettered on several occasions since then.
Over the first year of Trump’s presidency, the Dow has gained more than 25% moving from 18,000 to break the 23,000 level. The S&P 500 has gained nearly 21% over the same period. Economic growth has remained strong for most of this time while unemployment has fallen steadily.
Quarterly earnings results have also shown steady improvement with third-quarter numbers largely coming in well above estimates. Meanwhile, prospects of tax cuts continue to offer catalysts for stock gains. In such a scenario, investing in top ranked stocks which have notched up strong gains over the last one year makes for a prudent option.
Booming Economy, Bullish Earnings
During Trump’s first year in office, nearly 1.8 million jobs have been added to the U.S. economy while unemployment has dipped to a paltry 4.1%, per the latest jobs report. In the second quarter, GDP increased at a 3.1% annual rate, a pace which is likely to continue for the rest of the year. According to the Commerce Department’s first estimate, the U.S. economy expanded at a 3% pace in the third quarter, which represents only a marginal decline from the preceding quarter.
Following two successful quarters of earnings numbers, U.S. companies posted all-time record earnings in the third quarter. As of Nov 3, we had received Q3 results from 406 S&P 500 members that combined account for 85.4% of the index’s total market capitalization. Total earnings for these companies are up 7.5% from the same period last year on 6.3% higher revenues, with 73.9% beating EPS estimates and 66.7% beating revenue estimates. (Read: Zacks Investment Research
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