NEW YORK (TheStreet) -- Four more years or four different years? We will know by end of day Tuesday. Hopefully, barring any recounts.
Markets tend to rise the day after a Republican victory, but long-term returns are dependent on management execution rather than who is in the White House, as Jim Cramer reminded viewers on CNBC's Mad Money on Monday.
Still, in the days immediately following the election, the market will likely bid up stocks from select sectors such as energy, defense and banking if Romney wins, given these sectors are where the two parties have the most differences in approach.
RBC Capital markets identified more than 15 stocks that stand to benefit from a Romney victory, published in a report last week, as well as a handful that could benefit if Obama stays in office.Here are ten stocks ranked by ascending order of market cap that stand to gain if Governor Romney wins. Chipotle Mexican Grill CMG Total Return Price data by YCharts
Shares of Chipotle Mexican Grill (CMG) are down 21% year-to-date. Restaurant stocks including Chipotle and Darden Restaurants (DRI) if Obamacare is repealed according to RBC Capital analyst Larry Miller. Restaurants the analysts cover say they expect additional health care to cut 1% to 2% from their margins beginning in 2014, with steeper effects for those that are 100% operated as opposed to franchises. These two stocks are most poised to benefit if Romney wins and Obamacare is repealed. "Darden is a labor-intense business; and as such, it is already testing operating with more part-time employees to skirt the new law. The effect on Chipotle's stock would be greater because any earnings compression would be magnified by its high multiple." Chipotle, of course, has been in the news after hedge fund manager David Einhorn revealed he was short the company, arguing it is overvalued. and is facing heavier competition from a revamped Taco Bell, of Yum!Brands (YUM). Read why Einhorn's Chipotle short is starved for logic.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV