JPMorgan says the potential for deregulation under President-elect Donald Trump will create an investment opportunity around those companies currently facing the biggest government scrutiny.
"The incoming administration has proposed reducing the regulatory burden on corporations across the board, especially in areas where Trump and congressional Republicans are in alignment," U.S. equity strategist Dubravko Lakos-Bujas wrote in JPMorgan's 2017 outlook.
Trump has called for the repeal or roll back of certain policies such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Barack Obama in July 2010, in response to the 2008 financial crisis. Deregulation in other areas such as oil and gas drilling on federal lands, and relaxed environmental laws regarding coal production, are also possible, JPMorgan says.
Given the potential for deregulation, the investment firm identified 24 U.S. companies that could benefit the most, the majority of which belong to the oil and gas, financial, and autos and trucking industries.
From that list, below we highlight the ones where analysts at JPMorgan have an overweight rating based on fundamentals. The percentage change shows the performance of these stocks since the U.S. presidential election.