Donald Trump’s presidential victory has caused a shockwave of enthusiasm that’s managed to work its way across the border, with the TSX Index recently making new highs in the days that followed the 2024 U.S. presidential election. Indeed, the bullish surge caught many new investors by surprise, especially given there was a bit of anxiety in the days leading up to Halloween. Indeed, the only thing scarier than Halloween seemed to be uncertainties regarding the U.S. election that was right up next.
As it turned out, the markets reacted overwhelmingly positively to Trump’s win. And though not every stock rose as much as the markets did, I think that investors shouldn’t hesitate to pick up a Canadian stock on its newfound momentum. Some of the names on their way up are still cheap, at least in my view. And in this piece, we’ll look at two such names that could continue to heat up over the next 18 months.
Let’s look at one Canadian stock and a U.S. one that looks enticing this month.
Shopify
Shopify (TSX:SHOP) stock is due to report its quarterly earnings results tomorrow (November 12, 2024), and the short-sellers have been piling in ahead of the unveiling. Indeed, the stock is hot right here after spiking close to 10% in the sessions that followed election day.
While the name may be a tad overbought here, I would not dare bet against the Canadian e-commerce innovator ahead of earnings. Indeed, SHOP stock is coming in hot ahead of the result. And while there’s a realistic chance of a double-digit percentage pullback in response to sub-par numbers, I’d argue that Shopify may just have enough delightful surprises up its sleeve to cause a breakout above 52-week highs. Indeed, a lot needs to go right for that kind of breakout past $122 and change.
However, if Tobias Lutke can shed more light on artificial intelligence (AI) efforts, I see a scenario that could help SHOP stock close the year off at much higher levels. As always, be careful trading at stock around earnings, as they could go either way. Perhaps nibbling ahead and after the results could prove wise.
Salesforce
Salesforce (NYSE:CRM) stock just hit a new all-time high and could be headed past $330 as the company looks to ramp up on AI.
Recently, the company noted its intent to hire 1,000 people to work on an AI agent platform. Indeed, the AI trade may have lost some of its shine in recent years. But as the tides shift toward AI agents, I think investors should be sticking with the firms that are devoted to investing a great deal in tech.
In any case, CRM stock still looks enticing at 27.9 times forward price to earnings (P/E), a fair price for one of the most underrated AI enterprise software firms out there today. Like with SHOP stock, I’d build a position over time as recent share price momentum could pave the way for volatility over the next year. If you’re a believer in Marc Benioff and his firm’s abilities to be one of the AI leaders, I think the name is a must-watch going into 2025.
