President-elect Donald Trump's unexpected victory sent hundreds of thousands of protesters into the streets across the country on Wednesday, as stunned Americans opposed to his election roused from their fetal position.
But for investors, here is the most stunning development: Despite dire predictions of a market crash if he won, stocks actually rallied. Highlighted below are four of the best moneymaking opportunities in this highly uncertain if not frightening investment climate.
Among the biggest gainers on Wednesday were four stocks that are positioned to beat the broader market under a Trump presidency. The respective sectors of these companies convey profitable exposure to key industries in war and peace, encompassing aerospace/defense, banking and pharmaceuticals.
1. Lockheed Martin (LMT)
As the largest defense contractor in the world, Lockheed Martin is a superb play on persistent demand for military aircraft. Lockheed Martin shares jumped 5.97% on Wednesday, as investors realized that a Trump administration would pursue considerably more bellicose policies than his Democratic predecessor.
Regional hot spots should heat up next year and beyond, especially those involving Trump's ally, Russian President Vladimir Putin.
Lockheed Martin's combat jets are greatly coveted by warring nations around the world. These sophisticated aircraft also generate high profit margins and undergo constant technological upgrades.
Analysts have a five-year earnings growth target for Lockheed Martin of 6.63%, compared with 0.08% for its industry.
Trump plans to populate the Pentagon with neoconservatives who advocate a more aggressive stance in the Middle East. Accordingly, expect demand for armed drones to soar.
Raytheon also is a key contractor behind Israel's Iron Dome missile defense system.
Shares of Raytheon jumped 7.47% on Wednesday.
Analysts have a five-year earnings growth target for Raytheon of 8.29%, compared with 0.08% for its industry.
3. Teva Pharmaceutical Industries (TEVA)
The company is the largest maker of generic drugs in the world, and it is also in the forefront of biotechnology development, boasting a portfolio of drugs that are ready to be launched next year.
But in the aftermath of this week's electoral earthquake, investors realize that a Trump Justice Department would be laissez faire when it comes to antitrust enforcement, letting a wide range of corporations off the hook for behavior that might have landed them in hot water under a Democrat.
Shares of Teva Pharmaceutical Industries jumped 3.10% on Wednesday.
Analysts have an earnings growth target for Teva Pharmaceutical Industries of 4.56%, compared with 0.19% for its industry.
4. Wells Fargo (WFC)
A holding in Warren E. Buffett's Berkshire Hathaway, Wells Fargo is a leader in the U.S. mortgage market, which continues to recover as the U.S. economy expands and unemployment falls. Wells Fargo also is diversified and offers wealth management and brokerage services to elite clients, which in turn generates high profit margins for the bank.
Wells Fargo serves more businesses and consumers than any other U.S. bank, with more than 12,000 ATMs and more than 9,000 retail branches in 39 states and the District of Columbia.
The stock has been under pressure because of the headline-grabbing scandal involving its creation of false accounts for customers, but the company was already shaking off the bad publicity and meager fines before Trump got elected. Now, the betting is that the bank's opprobrium will be a distant memory in a Republican-led White House and Congress.
Analysts have a five-year earnings growth target for Wells Fargo of 6.97%, compared with less than 1% for its industry.
Wells Fargo is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells WFC? Learn more now.
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