The US inventory market is surging proper now. Clearly, traders anticipate a Donald Trump administration to be nice for enterprise. The excellent news for British traders is that many UK-listed shares are set to learn from the Republicans’ victory too. With that in thoughts, listed here are two FTSE 100 shares that would doubtlessly do effectively whereas Trump is president and are price contemplating.

Constructing growth?

Trump desires to “make America great again”. So, we are able to anticipate to see loads of constructing and development over the following 4 years or so. New infrastructure is more likely to be a key space of focus. As are manufacturing factories (like semiconductor manufacturing vegetation).

One UK firm that I’d argue is nearly actually going to learn from all this exercise is Ashtead (LSE: AHT), which rents out development tools. Right this moment, the majority of its income comes from the US by way of its Sunbelt Leases division so it’s very effectively positioned to capitalise on a Trump development growth.

It’s price noting that when Trump gained the US election final week, Ashtead was probably the greatest performers within the Footsie. Within the blink of a watch, the inventory jumped greater than 6%.

After its latest bounce, Ashtead shares aren’t in cut price territory. Presently, the forward-looking price-to-earnings (P/E) ratio right here is about 20.8.

That valuation does add a little bit of danger. If US authorities spending on development doesn’t finish up coming by within the years forward, we may see some share price weak point.

I personal some shares in Ashtead nevertheless, and I’m snug with the earnings a number of, given the supportive backdrop. It’s price noting that a number of brokers have price targets across the 7,000p mark, which means that they anticipate the shares to proceed rising.

A growth for companies

One other firm that appears effectively positioned to learn from a Trump administration is Sage (LSE: SGE). A supplier of accounting and payroll software program to small and medium-sized companies, it generates nearly half its income within the US right this moment.

Trump is a pro-business politician, favouring decrease company tax charges and fewer regulation. So, the backdrop for small and medium-sized companies throughout America could possibly be wholesome within the years forward.

A supportive backdrop may give corporations the arrogance to spend money on new know-how. I can see Sage – which will help firms automate loads of handbook accounting and payroll processes – benefitting right here.

It’s price noting that because the election, Sage’s share price has moved noticeably increased. So clearly, I’m not the one one with this view.

Now, loads of UK traders may baulk on the valuation of this inventory. Presently, the P/E ratio is about 25 – which is sort of excessive for the UK inventory market. Ignoring the inventory due to this earnings a number of could possibly be a mistake, nevertheless. Sometimes, software program firms have increased P/E ratios because of the truth that they’ve recurring revenues and they’re very worthwhile (minimal bills).

In fact, there are nonetheless dangers right here. One is competitors from newer gamers out there resembling Xero.

On the present valuation, nevertheless, I just like the risk-reward setup. In 2028, I anticipate this inventory to be a lot increased than it’s right this moment so I believe it’s price contemplating proper now.