What to buy now on the Republican takeover

Shares of coal and natural gas companies, as well as medical device makers have not yet fully priced in the Republican blowout in midterm elections, according to investors.

Read MoreMidterm elections: A sure bet for investors?

"You get your post-election rally and then you get the earnings shift because of the changes made by the newly elected leaders," said Daniel Clifton of Strategas Research Partners in Washington, D.C.

Shares of coal producer Peabody Energy jumped 2 percent in earlier trading Wednesday, paring a 40 percent-plus decline for the year. Shares of Alpha Natural Resources, Arch Coal and Walter Energy, which all lost more than half their value in 2014, also bounced back.

"You have a Senate majority-leader-to-be from Kentucky, who ran his entire campaign on coal," said Clifton. "They are going to slow down some of these rules."

Read MoreWhat the GOP sweep will mean for business, economy

The Energy Select Sector SPDR Fund was the best industry performer by far in trading earlier Wednesday, as post-election value seekers scooped up stocks that have been decimated by the collapse in crude oil this year.

What feeds the market from here?
What feeds the market from here?   


Baker Hughes, whose shares hit a 52-week low last month, jumped more than 3 percent on hopes "fracking" will no longer be a dirty word on Capitol Hill. The company was joined by its oilfield service friends Schlumberger and Halliburton, whose shares both jumped more than 2 percent.

Read MoreHow fracking works

Shares of TransCanada, which would operate the Keystone XL pipeline pending congressional approval, rose as much as 3 percent.

Teekay, which would see a large jump in business if Republicans push through more exporting of liquefied natural gas, climbed into the green late Wednesday morning.

Away from energy-related names, Baxter International jumped on expectation Republicans would repeal a tax on medical device makers in 2015. Before the election, the shares were little changed on the year.

Read MoreFirst up for Republicans: Expect this change

The Republicans "have bipartisan support to overcome an Obama veto," said Strategas' Clifton on the medical device tax repeal.