Since Election Day, the Top 10 S&P 500 stock gainers.

• Many stocks have seen double-digit returns since Election Day.
• One analyst stated that Tesla stock received an "Elon Musk premium."

Many large U.S. companies have seen their stocks swell since the presidential election.

Since Election Day, the top 10 performing stocks have experienced returns of 18% or more, according to data from S&P Global Market Intelligence, which analyzed returns based on closing prices from Nov. 5 to Nov. 20.

According to S&P Global Market Intelligence, both Axon Enterprise (AXON) and Tesla, the electric-vehicle company led by Elon Musk, experienced stock gains of over 35%.

In contrast, the S&P 500 lost about 2% over the same period.

'Usually a bad idea' to buy on short-term gain

It is advised by Jeremy Goldberg, a certified financial planner, portfolio manager, and research analyst at Professional Advisory Services, Inc., which ranked 37th on CNBC's annual Financial Advisor 100 list, that investors should exercise caution when purchasing individual stocks based on short-term gains.

"Relying solely on short-term price moves as an investment strategy is risky, according to Goldberg, who stated that momentum is a powerful force in the market."

Goldberg advised investors to comprehend the factors behind the stock price increase and assess whether they are long-lasting.

Why did these stocks outperform?

Take the energy sector.

The Trump administration is predicted to be more inclined to approve oil and gas projects, according to analysts.

Trump has appointed Chris Wright, CEO of Liberty Energy, to lead the Department of Energy and has advocated for increasing fossil-fuel production and reversing Biden-era policies aimed at reducing U.S. greenhouse gas emissions.

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According to S&P Global Market Intelligence, EQT Corporation, one of the largest U.S. natural gas producers, experienced a 24% increase in its stock value from November 5th to November 20th.

Goldberg stated that an example of a company that profited from the "Trump momentum for energy" is.

Experts predict that U.S. regulators will likely be less strict about allowing potential mergers during Trump's second term.

Streaming companies, such as Warner Bros. Discovery and Disney+ owner The Walt Disney Co., may benefit from looser rules around consolidation, according to their statements.

Rosy earnings and AI

Experts stated that some stocks' outperformance was linked to positive quarterly earnings results or guidance provided by companies around or after Election Day.

Many such businesses cited artificial intelligence as a growth driver.

Palantir Technologies reported "unprecedented" demand for its AI platform in the third quarter, resulting in "exceptionally strong" earnings, according to Treasurer and CFO David Glazer.

According to S&P Global Market Intelligence, Axon and Palantir stocks experienced gains of 38% and 22%, respectively, from Nov. 5 to Nov. 20.

Some companies benefited from a combination of policy and earnings, experts said.

After Election Day, Vistra Corp.'s (VST) stock experienced a 27% increase.

Vistra is in discussions with large data centers, or "hyperscalers," in Texas, Pennsylvania, and Ohio to construct or enhance gas and nuclear power plants, as stated by Stacey Doré, Vistra's chief strategy and sustainability officer, during the company's Q3 earnings call on November 7.

To power the AI revolution, tech companies are constructing more data centers and require larger amounts of energy to operate them.

The 'Elon Musk premium'

And then there's the Elon Musk factor.

According to Goldberg of Professional Advisory Services, Tesla's stock received an "Elon Musk premium" following Trump's victory.

But Tesla stock has additional tailwinds, experts said.

The elimination of the $7,500 federal tax credit for EVs, as proposed by Trump, is predicted to negatively impact Tesla's competitors in the EV market.

Tesla has been working on technology for self-driving cars, and during a recent earnings call, Musk stated that he plans to use his influence in the Trump administration to create a federal approval process for autonomous vehicles.