American equities continued their strong surge as the market reacted to the latest presidential win by Donald Trump and the Federal Reserve interest rate cuts. Trump’s win means that the US will continue having lower taxes, while a trade war is a big risk.
The Fed slashed interest rates by 0.25% and hinted that more of them were coming. In most periods, the stock market does well when the Fed is cutting interest rates.
MicroStrategy | MSTR
Background
MicroStrategy is a large technology company that is well-known because of its huge Bitcoin holdings. In the past few years, the company has borrowed heavily and invested in BTC, making it the biggest holder in the world with over 252k coins.
Summary
MicroStrategy stock price went parabolic and reached an all-time high after Donald Trump won, pushing Bitcoin prices to a record high. As a result, its 252k Bitcoin holdings are worth over $19.2 billion.
Analysts believe that Bitcoin has more upside to go since it has formed a golden cross and inverse head and shoulders pattern. Fundamentally, analysts believe that Trump’s policies will favor Bitcoin and other coins over time. If this forecast is accurate, then MicroStrategy’s stock will continue surging.
Review date: 6th November
Hype change: 95%
Price change: 20%
Sentiment: POSITIVE
Deckers Outdoors | DECK
Background
Deckers Outdoor Corporation (DECK) is an American company that specializes on manufacturing apparel, footwear, and accessories for daily and high-performance activities. It operates its business through six brands like UGG, HOKA, Teva, Sanuk, and AHNU.
Summary
Deckers Outdoor's stock price jumped after the company's strong results that revealed its business was still seeing high demand. Most of these sales came from UCG and HOKA, which are its biggest brands. Its revenues jumped by 20% to $1.3 billion, leading to several analysts upgrades. The average stock estimate is $188, higher than the current $156.
Review date: 4th November
Hype change: 79%
Price change: 10%
Sentiment: POSITIVE
Humana | HUM
Summary
Humana is one of the biggest health insurance companies in the United States with over 17 million customers. Its solutions include the likes of Medicare and Medicaid. Its business is often determined by policies made in Washington. Over time, its revenue has jumped to over $106 billion annually.
Background
Humana’s stock price has been under pressure in the past few years as it crashed by over 61% from its highest level in 2023 and its lowest point this year. This decline happened as the cost of insurance jumped and as the Biden administration changed policies to favor patients.
Therefore, the Humana stock price has jumped sharply after Trump won the election. Analysts expect that Trump’s policies will help to deregulate the industry and favor insurance firms. Humana also published strong financial results, which showed that its revenue jumped to $29.39 billion in the last quarter.
Review date: 31st October
Hype change: 143%
Price change: 7.8%
Sentiment: POSITIVE
Kinder Morgan | KMI
Background
Kinder Morgan is a large company in the energy industry. It is a master limited partnership that gathers, transports, and processes various energy sources. Its main area of specialty is in the natural gas industry. Investors love the company for its strong dividends and long track record of revenue growth.
Summary
Kinder Morgan stock jumped after the Donald Trump election. Unlike Biden and Kamala Harris, Trump has campaigned with the promise of supporting the fossil fuel industry. He has pledged to remove some of Biden’s policies that hampered the industry.
The company is benefiting from the ongoing interest rate cuts and the fact that Europe is now importing most of its gas from the US. This demand has pushed its pipeline utilization rate to 87%, a figure that the management wants to grow. KMI has also seen its backlog jump to over $5.2 billion.
Review date: 23rd October
Hype change: 194%
Price change: 7.2%
Sentiment: POSITIVE
Texas Instrument
Background
Texas Instrument is a major company in the semiconductor industry that mostly focuses on analog chips. These are high-quality semiconductors that transform physical data like sound and light to one that can be interpreted by other forms of chips. TXN’s products are mostly used in the automobile and manufacturing industries.
Summary of TXN stock
The main catalyst for the Texas Instruments stock surge is that it published better-than-expected financial results. Revenue came in at $4.15 billion, signaling that its demand was recovering.
The company also provided upbeat forward guidance. However, the main challenge for investing in Texas Instruments is that it is a highly overvalued company. It has higher valuation multiples compared to other chip companies that are growing at a faster pace.
Review date: 28th October
Hype change: 95%
Price change: 20%
Sentiment: POSITIVE
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