Like Britain’s decision to leave the EU, the unexpected occurred after Donald Trump beat Hillary Clinton to win the White House. As the future 45th President of the most powerful nation in the world, Donald Trump and his policies will have a strong impact on the earnings of various companies in the market today.
In this article, let’s find out how a Trump Presidency potentially benefits Westmoreland Coal Company (NASDAQ:WLB), Corrections Corp Of America (NYSE:CXW), Clovis Oncology Inc (NASDAQ:CLVS), United States Steel Corporation (NYSE:X), and Cliffs Natural Resources Inc (NYSE:CLF), all of which are surging today. Let’s also see what the smart money thought of each stock at the end of the second quarter.
While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).
Westmoreland Coal Company (NASDAQ:WLB) shareholders are happy today after the stock surged 20% to trade above $15 a piece. Seeing as Donald Trump is in favor of less regulation and given that the President-elect has promised to do more to help coal miners, traders anticipate stronger demand for coal than before. If coal demand increases, Westmoreland Coal top and bottom lines could potentially benefit. Of the 749 elite funds we track, 12 funds owned $56.04 million of Westmoreland Coal Company (NASDAQ:WLB) and accounted for 31.80% of the float on June 30, versus 14 funds and $195.9 million respectively on March 31.
Of all the listed stocks in the U.S., very few have rallied more than Corrections Corp Of America (NYSE:CXW) on Wednesday. Shares of the company have surged almost 50% on the hopes that federal business for the company’s private prison segment might continue and that Trump’s immigration policies might mean more demand for the company’s Immigration & Customs Enforcement segment. Hillary Clinton’s stance was to phase out federal usage of private prisons. 15 elite funds owned shares of Corrections Corp Of America (NYSE:CXW) at the end of the second quarter, up 2 funds from the previous quarter.
On the next page, we find out why Clovis Oncology Inc, United States Steel Corporation, and Cliffs Natural Resources Inc are surging.