US Stocks Enjoy Highest Post-Midterm Gains Since 1982: 5 Picks

Since Republicans continued to hold on to their Senate majority, Trump’s tax cuts would survive until the Presidential elections of 2020. At the same time, a divided Congress could prevent the President from announcing further tax cuts which have already created a substantial budget deficit.

Congress could even witness bipartisan progress on higher infrastructure spending. This is one issue Trump has been touting since his election and dovetails neatly into traditional Democratic priorities. Any measure taken on this count would also be largely fiscally neutral.

With the Trump administration focused on increasing defense spending, Pentagon funding would also rise. Democrats have also agreed to raise the defense budget for fiscal year 2019. 

Our Choices

Markets have warmly welcomed the announcement of midterm election results. Some market watchers think that this is largely a relief rally, since the results provided no major surprises. However, a gridlocked Congress could serve to maintain the status quo.

This would benefit diverse economic sectors even as spending on defense and infrastructure rises. This is why it makes sense to bet on stocks that have gained year to date and are set to move higher in the near future. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score. 

Amedisys, Inc. (AMED - Free Report) provides home health and hospice services throughout the United States to the growing chronic, co-morbid and aging American population.

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