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3 Stocks That Are Big Winners After The U.S. Election

By Investing.com (Haris Anwar/Investing.com)Stock MarketsNov 06, 2020 04:23PM ET
www.investing.com/analysis/3-stocks-that-emerge-big-winners-from-the-us-election-results-200543664
3 Stocks That Are Big Winners After The U.S. Election
By Investing.com (Haris Anwar/Investing.com)   |  Nov 06, 2020 04:23PM ET
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The hotly contested U.S. elections have produced some unexpected winners and losers in the stock market. The biggest gainers in the post election rally are technology and healthcare stocks as the divided mandate reduces the chances of major regulatory and tax changes which could hurt their growth.

Below we have shortlisted three stocks whose post election gains give some insight on money managers latest thinking and why other stocks from these sectors might benefit if this rally gathers further momentum.

1. Uber

The world’s largest ride-hailing service Uber (NYSE:UBER) and other gig economy companies won a crucial ballot measure in California that will exempt them from reclassifying their drivers as employees.

Uber Daily
Uber Daily

In lieu of full employee benefits, voters in the state favored a move which requires the companies to put in place a slimmer package that includes a guaranteed pay rate for when drivers have an assigned passenger, and some alternative health, disability, and non-discrimination guarantees.

The outcome allows the ride-hailing and delivery companies—including Lyft (NASDAQ:LYFT), Postmates Inc. and Instacart Inc—to avoid complying with a California law that would have reshaped the way they operate in the most populous U.S. state.

Uber shares soared 14% on Wednesday as investors welcomed the victory which will help these gig economy operators in saving costs and keeping their business models intact. After the surge, Uber stock now trades where it was just before the pandemic. It closed on Wednesday at $40.99, up about 30% this year.

2. United Health

Health insurers and drugmakers also gained ground as it became clear that Democrats won’t be able to sweep the election in a “'blue wave.' 

A divided government means the drug pricing and reimbursement reforms won’t stand a chance to go through. Predicting this outcome, investors sent UnitedHealth Group (NYSE:UNH) stock surging 10% on Wednesday as the world’s biggest health insurer closed at $354.56, adding to its 30% gains this year. 

United Health Daily
Daily

Goldman analyst Asad Haider in a note, cited by Bloomberg, said the divided government is positive for health insurers as the managed-care sector faces less risk of a “large progressive public option” or a corporate tax increase. 

Before the election, the health-care sector was trading at its largest ever price-to-earnings discount to the broader market. “The group starts to become more investible again,” he said.

3. Facebook

Shares of Facebook (NASDAQ:FB) have also got a major boost on hopes that the results of U.S. elections would reduce the risk of regulation on the social media industry.

Facebook Daily
Facebook Daily

The Wall Street Journal reported last month that the Federal Trade Commission (FTC) staff members are recommending that the agency bring an antitrust case against Facebook. 

The FTC has spent more than a year looking into complaints that Facebook has been using its powerful market position to stifle competition, part of a broader effort by U.S. antitrust authorities to examine the conduct of big technology companies, the report said.

During the Trump administration’s four-year term, Facebook has increasingly come under fire for breaching user privacy and its role in allowing hate speech and misinformation to spread across its network. 

With the Republicans likely to maintain control of the Senate, reaching a consensus on how to curb the power of big tech will be a challenge and it’s likely that the status quo will continue. FB shares rose more than 8% on Wednesday. 

3 Stocks That Are Big Winners After The U.S. Election
 

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3 Stocks That Are Big Winners After The U.S. Election

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Comments (21)
Mike Brarey
Mike Brarey Nov 10, 2020 10:58PM ET
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good job, you suggested the 3 riskiest shares.
Boyoung Schang
Boyoung Schang Nov 07, 2020 2:08PM ET
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I am not sure about facebook. They start censoring. They become too political. I don’t like that at all. Free speech! Freedom of information snd opnions! They become the party of Dems who only want you to listen their opnions. If you have different opinions or disagree, You will be censored and blocked!
Dan Cravens
Dan Cravens Nov 07, 2020 10:22AM ET
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ACB jumped almost 80% yesterday
Phillip Artis
Phillip Artis Nov 07, 2020 10:22AM ET
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$SNDL
Gary Foreman
Gary Foreman Nov 07, 2020 4:39AM ET
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Lyft and uber still to risky. No ones sharing lifts or cabs. Could still be a year away from a vacine.
James Gomez
James Gomez Nov 07, 2020 2:03AM ET
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Uber? maybe later. if Biden wins then we're looking at a very good chance of another lock down and thats no bueno for Uber
frisky mind
frisky mind Nov 07, 2020 1:26AM ET
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what about cannabis industries
Sy AG
Sy AG Nov 06, 2020 5:11PM ET
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Thanks 👍
bmk kmb
bmk kmb Nov 06, 2020 12:05PM ET
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November 3, 2020 American Democracy Died.
ranjan gaurav
ranjan gaurav Nov 06, 2020 11:55AM ET
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buy Chinese strong recommendation
Victor Radonji
Victor Radonji Nov 06, 2020 11:55AM ET
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Hello
Faruk Soola
Faruk Soola Nov 06, 2020 11:55AM ET
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give your opinion why Chinese is Strong
Tony Cheng
Tony Cheng Nov 06, 2020 11:55AM ET
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China makes much higher quality reliable products than USA, and has world dominance in 5G and AI, if you want the best that's where you must go to get it.
Mauricio V.
Mauricio V. Nov 06, 2020 11:54AM ET
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CVS.
Elvisio Elvisio
Elvisio Elvisio Nov 06, 2020 11:46AM ET
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China is the true winner under Democrats
Liliana Martinez
Liliana Martinez Nov 06, 2020 11:41AM ET
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ACB AURORA CANNABIS - decriminalized marijuana. Biden said he will
James Waicekauskas
James Waicekauskas Nov 06, 2020 11:41AM ET
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acb - amy coney barret. this is a psychological buy
James Waicekauskas
James Waicekauskas Nov 06, 2020 11:41AM ET
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acb amy coney barret. this is a psychological buy
Ragnar Skoll
Ragnar Skoll Nov 06, 2020 11:37AM ET
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Ailbaba is a winner.
Hardik Patel
Hardik Patel Nov 06, 2020 11:33AM ET
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Wrong! China, MJ, and green energy are the 3 big winners
Sedat Erdem
Sedat Erdem Nov 06, 2020 11:32AM ET
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Aurora Cannabis (#ACB) you should get news too.
James Waicekauskas
James Waicekauskas Nov 06, 2020 11:32AM ET
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amy coney barret
Kristof Naessens
Kristof Naessens Nov 06, 2020 11:31AM ET
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You forgot the whole Precious-metals sector!
Victor Asturias
Victor Asturias Nov 06, 2020 11:31AM ET
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China wins 1. Nio2. Xiaomi
YUNUS EMRE ALTUN
YUNUS EMRE ALTUN Nov 06, 2020 11:31AM ET
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Unh <3
Adamo Nals
Adamo Nals Nov 06, 2020 4:20AM ET
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Apple all day. You will kick yourself in a month if you don’t buy apple now. I got it at 107. It’s still a strong buy still off 20%+ from ath
Zach Esters
Zach Esters Nov 06, 2020 4:20AM ET
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Do NOT buy more Apple right now.... buy in late December, early January. 💯✅
joe ruiz
joe ruiz Nov 06, 2020 4:06AM ET
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Sounds like one should Buy the election results in certain industries.
michael van
michael van Nov 06, 2020 2:33AM ET
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Fake information
Alexandru Badrus
Alexandru Badrus Nov 06, 2020 2:33AM ET
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why?
Alexandru Badrus
Alexandru Badrus Nov 06, 2020 2:33AM ET
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why so?
Iso Vipu
IsoVipu Nov 06, 2020 2:33AM ET
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to pump market
Steisy Diaz
Steisy Diaz Nov 06, 2020 2:33AM ET
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Uber is correct though!
 
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