Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
The United States Presidential Election is over and, with it, some of the uncertainty surrounding America’s economic future. Global stock markets have been upbeat since the announcement of the results, with Biden’s agenda solidifying investors’ predictions.
Top Stocks Under a Biden Presidency
President-elect Biden has now proposed a large part of his agenda. Given that, there are several stocks worth researching for investment. The following are four stocks that are predicted to do well under a Biden presidency.
Biden has, on multiple occasions, indicated his position on renewable energy and climate change. This bodes exceptionally well for American-based green energy companies, as Biden is pushing for local job creation as well. Energy companies are also a pillar of impact investing, which is growing in popularity.
NextEra Energy is an electric utility company that is the third-largest in the United States. It has over 10 million customers and operates primarily in Florida. It ranked 172th on the 2020 Fortune 500 of the largest United States corporations by revenue.
The company’s financial figures have all been growing in the past few years. Coupled with recent promising reports, NextEra could be a good investment choice for the next few years.
Marijuana stocks have been on the uptick over the past few years as well, largely because of relaxing attitudes. This election, however, has really added some life into this niche, with multiple states legalizing recreational marijuana.
In the light of these developments, Canopy Growth appears to be a good contender for growth. Founded in 2013, the Ontario-based cannabis company was one of the earliest market entrants. In April 2019, it became the world’s largest cannabis company based on market cap.
Though it has had some ups and downs, reflecting in the share value, the new administration could give the company a boost. Recent quarterly reports also offer some good omens.
In its Q4 2020 Financial Year report, Canopy Growth has experienced lower sales but also lower than expected losses.
The company is attempting to run on leaner operations, focusing on a few key products.
Tesla needs little introduction, being one of the most talked-about stocks of the year. The share price has been volatile, often precipitated by remarks from Elon Musk, but the prospects appear good nonetheless. Tesla is one of the most well-known brands from recent years, and that alone is worth a lot.
2020 has been an interesting year for Tesla — there has been volatility, but the price has also been at its highest. Biden’s announcement to push electric vehicle usage in America will have an enormous sway on the direction of the automobile industry. Tesla is by no means the only such manufacturer, but certainly has clout in the market.
Q3 2020 saw the company generate $1.9B in free cash flow.
Automotive revenues have grown 42% year-over-year.
Operational income has grown 210% year-over-year.
The company delivered 139,593 vehicles during Q3 2020, the most it has done in a quarter so far.
Generally speaking, Tesla has had a record-setting Q3 2020 on many levels.
Workhorse Group is another company that manufactures electric vehicles, though its primarily product is delivery vans. In addition, it also builds electric delivery drones, a small but growing segment of its business.
Biden’s push for electric vehicle usage to both modernize America’s automobile industry and reduce carbon emissions factor in here. In the era of home deliveries that we now live in, electric drone deliveries stand a strong chance of blooming. Approach this company with a little more caution, but note that it is working in a promising space.
The Q3 2020 report shows that sales for the quarter are at $565,000, up from $4,000 in Q3 2019.
Cost of goods sold doubled in value to $2.8 million from the same period in 2019.
The company has targeted a 2021 production volume of 1,800 vehicles.
Partnered with Hitachi and Hitachi Capital America to optimize the Company’s manufacturing, operational, and supply chain capabilities.
It’s clear that there are some very specific sectors that stand to benefit the most from Biden’s policies. Green energy, infrastructure, and technology look like they could be worthwhile investments for the next four years. There is also a positive takeaway in that millennials are optimistic, putting in the effort to research stocks.
Generally speaking, the next four years may see a surge in socially responsible investing. New industries with a lot of potential will emerge. But most importantly, the election’s end will bring strength to the markets, which has been volatile in the lead-up.
What impact do you think the Biden administration will have on the stock market in the years to come? Which sectors, in particular, look promising? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.