January 21, 2025
The Magnificent Seven stocks have grabbed investors’ attention for quite some time, with their surging share prices and market capitalization exceeding $1 trillion. However, a new set of stocks, including one of the Magnificent Seven, is likely to gain big with Donald Trump returning to the White House for the second term. He vowed to avoid new tariffs on his first day, easing investors’ dilemma about possible trade disruptions.
Some of the notable stocks set to benefit directly or indirectly from Trump’s administrative policies are Tesla, Inc. TSLA, Coinbase Global, Inc . COIN, MicroStrategy Incorporated MSTR and Robinhood Markets, Inc. HOOD. Let’s see why these are worth a watch –
Since the Nov. 5 election, Tesla’s shares picked up steam, gaining 69.6%. Its market capitalization touched a staggering $1.4 trillion. Trump’s bonhomie with Elon Musk and the latter’s appointment as the co-head of the Department of Government Efficiency restored investors’ confidence in the electric car manufacturer.
Market participants expect Musk to tweak regulatory policies in favor of Tesla’s low-cost robotaxi development and introduce driverless cars into the market without much government interference. Hence, the company’s expected earnings growth for the current and next quarters are 7% and 60%, respectively. Anyhow, Tesla’s shares are currently trading above the short-term 50-day moving average (DMA) and long-term 200 DMA, indicating a bullish trend (read more: Tesla Stock Surges Post-Trump Win: Consider Buying for 2025?).
Coinbase runs a cryptocurrency exchange platform. Coinbase’s shares have soared 52.3% since Nov. 5 and its market capitalization is at $74 billion. Trump’s crypto-friendly strategies have boosted Coinbase’s shares as he appointed crypto-pro Paul Atkins to the Securities and Exchange Commission in the United States.
An increase in transactions, utility enhancements, low leverage and USDC partnerships have also strengthened COIN’s growth trajectory. Thus, the company’s expected earnings growth rate for the current year is a whopping 1,410.81%. COIN’s earnings per share (EPS) are projected to increase by 1245.2% from last year. The Zacks Consensus Estimate is of $4.81.
Trump’s vow to build a strategic bitcoin (BTC) reserve and crypto-friendly initiatives helped MicroStrategy’s shares jump 74.1% since Nov. 5, with its market capitalization hitting $97.7 billion. MicroStrategy’s initiatives to bolster its BTC holdings amid Trump’s election victory increased the attractiveness of its stock.
MicroStrategy’s Nasdaq 100 inclusion increased its liquidity, also potentially supporting its BTC buying strategy. Brokers expect the MSTR stock to rise and have raised its average short-term price target by 41.5% to $561 from the previous $396.50 (read more: Palantir or MicroStrategy: Better Buy in Nasdaq 100 for 2025).
Robinhood Markets saw its shares climb 92.9% since election day, with its market capitalization growing to $42.6 billion. The online brokerage firm has been a direct beneficiary of the Trump presidency. The Trump administration plans to expand online retail brokerage to trade more crypto securities.
Robinhood Markets’ expansionary initiatives and product diversifications continue to boost its top-line growth. Therefore, the company’s expected earnings growth rate for the current year is 249.2%. The Zacks Consensus Estimate for its current-year earnings has moved up 23% over the past 60 days.
Tesla stock has a Zacks Rank #3 (Hold), while Coinbase and Robinhood Markets have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
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