Privatizing the quasi-governmental companies would also a huge boon to a growing contingent of hedge fund speculators, who have invested in the pair and advocated that the government allow the companies to keep more of their own profits.
That outcome would be a far cry from what was expected just a few years ago, when Fannie and Freddie’s shares were worth just pennies as the government indicated that it would eventually phase them out entirely. The reason is fairly straightforward: Trump’s treasury secretary pick, former Goldman Sachs banker Steven Mnuchin, suggested privatizing Fannie and Freddie, which have been under government control since the mortgage lenders received a giant bailout during the financial crisis.
#TOP STOCK NEWSLETTERS 2016 MAC#
But that all changed when Trump won the White House: Both Fannie Mae (FNMA) and Freddie Mac (FMCC) stock have more than doubled since the Nov. Prior to the presidential election, Fannie’s and Freddie’s share prices were pretty much flat for 2016. We’ve lumped these two stocks together here because their businesses, their recent stock performance and their near-term outlooks are close to identical. Morgan analysts, who rate AK Steel “overweight” (that is, a buy). “Trump’s impact on trade and therefore domestic steel supply and prices could be much quicker and more meaningful than Trump’s infrastructure plans,” write J.P. Oh, and it doesn’t hurt that Trump’s nominee for secretary of commerce is Wilbur Ross, the founder and former CEO of a major steel company. Not only is the Trump administration likely to green-light more infrastructure projects that will rely on heavy materials such as steel, the President-elect has signaled that he will enact trade policies that make imported steel less attractive while tipping the scales toward U.S. Still, the steepest jump in AK Steel’s stock price came after Trump won the election: AK’s shares are up more than 74% since Nov. After several years of losses, AK Steel (AKS) is expected to turn a profit in 2016, as the company continued to cut costs while also benefiting from higher prices. But they bounced back forcefully after hitting bottom in early 2016, as steel producers cut production dramatically. Iron ore and steel prices fell precipitously in 2015 on slowing demand for construction material in China.
#TOP STOCK NEWSLETTERS 2016 FULL#
Here’s the full list of 2016’s biggest Fortune 500 stock winners.Ģ016 return: 359% Courtesy of AK Steel Holding So even if you missed out on a four-bagger return this year, there may be more rallies to come for some of these stocks in 2017. Indeed, six of the top 10 performers come from the bottom half of the 500 list.Įven though they may no longer be underdogs, the stocks of many of 2016’s best performers remain well below their all-time highs, and several still look cheap. by revenue, none of this year’s top gainers was among the very biggest of the big. presidential election, prompting hopes of a wave of new spending on infrastructure.Īlso, although Fortune 500 members are, by definition, the largest companies in the U.S.
Three are steel companies whose stocks took off after Donald Trump won the U.S. Most of this year’s big winners come from unsexy industries beset by struggles from which these firms are just starting to emerge. Still, you won’t find any high-growth tech companies on this list. In a year when the S&P 500 has gained a solid 10%, these Fortune 500 companies ran circles around that return: All of the stocks on this list at least doubled their share prices in 2016, and the top two winners each more than quadrupled.
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