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.
"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."
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.