Any time the presidency changes hands in the United States, you can expect to see wide swings in value in the stock market, with investors piling into the stocks that will benefit most from the new president that will soon take office. Recently, Joe Biden won the United States Presidential Election, taking the White House from President Donald Trump.
As is the case in any election, the change in our country’s leadership will play a role in the movement we see in the market in the near future, and over the next several years. So, which stocks will be winners in a Joe Biden stock market?
Clean Energy Stocks Will Roar
Throughout his bid to become the President of the United States, and for years prior to his run, Joe Biden has been clear in terms of his views toward climate change. Based on his outspoken views, I’m expecting that a Biden Presidency will lead to tax benefits for those who provide clean energy products and services as well as those who consume them. Moreover, there’s a strong probability of new governement grants coming down the line for comapnies in this space.
In my view, the clean energy stocks that will benefit most from a Biden Presidency include:
NextEra Energy (NYSE: NEE)
I recently announced that I added NextEra Energy (NYSE: NEE) to my investing portfolio. Click here to see all of my holdings FREE! Nonetheless, there’s good reason for my decision to invest.
As mentioned above, a Biden win is a win for clean energy, and when it comes to wind and solar energy NEE is the bee’s knees. The comapny is the largest electric utility in the United States. That scale provides stability, and dividneds. While the dividend yield isn’t what most utilities provide, I’m in it for the growth, particularly on the clean energy side of the equation.
Currently, NEE is one of the world’s largest producers of solar and wind energy, leading the way in the transition from the burning of fossil fuels in nuclear power plants to renewable energy sources that reduce the carbon footprint we leave on this planet. As a result, I’m expecting for NEE stock to be a primary beneficiary of changes made by the Biden Administration.
FuelCell Energy (NASDAQ: FCEL)
FuelCell Energy (NASDAQ: FCEL) is a stock that I‘ve been following for some time. The company is a cornerstone in the fuel cell and carbon capture space. In fact, the company is so advanced in this emerging space that it has signed agreements with ExxonMobil (NYSE: XOM), Pfizer (NYSE: PFE), and Toyota.
FCEL is also a favorite among the United States Government. Not only has the company been the center of grants from the Department of Defense surrounding fuel cell research for clean energy purposes, it has successfully completed projects with the United States Armed Forces, providing power to the Navy and other core assets.
As a dominant player in the fuel cell and carbon capture industry, and Biden taking the White House in the near future, there’s a lot to look forward to from FCEL stock.
First Solar (NASDAQ: FSLR)
You can’t talk about clean energy without talking about solar, and when it comes to the company that is taking solar by the horns, First Solar (NASDAQ: FSLR) is it. While most companies in the solar space are focused on manufacturing solar panels for residential and commercial use, FSLR has a completely different business model, and it’s one that I expect to be a big winner.
The company builds massive solar farms across the United States. Prior to building these solar energy farms, FSLR reaches out to utilities in the area, generating contracts for the purchase of the energy produced at the solar farm. So, by the time the farm is constructed, all energy produced by the acres of solar panels is purchased.
As Joe Biden pushes the United States to a clean energy reality, solar farms are going to become more and more valuable. So, FSLR stock will be a key beneficiary of the Joe Biden presidential win.
Gevo (NASDAQ: GEVO)
Last, but definitely not least, we have Gevo (NASDAQ: GEVO). The company’s claim to fame is a proprietary process by which it converts carbon feedstock into clean, renewable fuels.
Currently, Gevo’s renewable fuels are being used in offroad vehicles ranging from all terrain vehicles (ATVs) to boats and even airplanes. However, in time, GEVO fuel may become the go-to fuel for every mode of transportation, including consumer vehicles.
Gevo already has massive contracts with some of the largest fuel distributors in the world. Now, the company is working on ramping up production in order to meet demand. With Biden coming into the White House, the company will have to act quickly in terms of this expansion because demand is likely to climb!
Electric Vehicle Stocks Are Attractive
Following along the lines of clean energy and climate change, electric vehicle manufacturers will likely benefit from a lot of the same perks that clean energy companies will. Considering his views toward the need to reduce the global carbon footprint, companies that focus on clean transportation and the consumers that use their products and services will likely benefit greatly from tax perks. Moreover, grants are likely going to be up for grabs for the companies that are consistently innovating in the space.
At the same time, JD Power recently gave Tesla horrible ratings in terms of reliability. As a result, not only will the vast EV market benefit from a Biden Presidency, the smaller plays in the space will likely benefit from increasing demand as consumers shy away from Tesla models. So, electric vehicle stocks are more attractive today than ever before. Here are a few you’ll want to look into:
Ideanomics (NASDAQ: IDEX)
Ideanomics (NASDAQ: IDEX) is a multi-purpose business, focusing on both electric vehicles and the fintech space. While the opportunities in the fintech space are worth looking into, that’s for another article.
On the electric vehicles side of the coin, the company is specifically focused on the availability of commercial electric vehicles. Its EV division, Mobile Energy Global, provides group purchasing discounts on commercial electric vehicles, EV batterires, charging stations, and electricity. The company also offers financing solutions.
As Biden pushes for clean energy, transportation is going to see big changes. While the vast majority of companies are focused on consumer vehicles, commercial vehicles are going to need to undergo an evolution as well. That’s why I believe IDEX stock will benefit greatly from a Biden Presidency.
AYRO (NASDAQ: AYRO)
AYRO (NASDAQ: AYRO) is an electric vehicle play like nothing else on the market. The company isn’t focused on selling its vehicle to retail consumers. Instead, it’s focused on providing solutions to commercial and government customers.
In order to tailor to this market, AYRO develops purpose-built electric vehicles. These vehicles have tool boxes, ladders, cherry picker buckets, and more, providing the perfect solution for just about any commercial need.
The shift to clean transportation is likely going to become a wave that sweeps the entire transportation industry. So, it only makes sense that purpose-built EVs will see tremendous demand ahead. As such, AYRO stock is one to pay close attention to.
Electrameccanica Vehicles (NASDAQ: SOLO)
Electrameccanica Vehicles (NASDAQ: SOLO) are like nothing else on the road. The comapny realized that a large portion of drivers drive alone. So, having a car that seats five passengers doesn’t make sense.
In order to solve the problem, SOLO developed an electric vehicle with just three wheels that seats one person, the driver. The vehicle has a range of 100 miles and can drive at speeds of 80 miles per hour. Moreover, as a small vehicle, the price tag is appealing to say the least.
As the world shifts to clean energy and transportation, low cost options will likely become the mass market sellers, and SOLO fits that bill. As a result, the stock has the potential to climb ahead.
XPeng (NYSE: XPEV)
XPeng (NYSE: XPEV) is a double beneficiary of the Biden win. First and foremost, the company is an electric vehicles play, and a very strong one at that. In fact, the stock recently soared after the company beat expectations and guided for tremendous growth ahead.
Aside from being a successful EV play, XPeng is a successful Chinese company. Under the Trump Administration, the United States has been in a Trade War with China for some time. However, those tensions are likely to ease under the Biden Administration. As such, the Chinese economy is likely to benefit, leading to stronger demand for new vehicles in the region. That bodes incredibly well for XPEV stock.
Chinese Stocks Will Be Big Winners
For the past several years, the United States has been in the midst of a Trade War with China, largely fueled by changes the Trump Administration has been working to make to trade agreements. With Biden coming into office soon, trade tensions between the United States and China will likely subside. As a result, we’re likely to see strong growth among stocks across the Chinese market. In my view, some of the best to look into include:
Kaixin Auto Holdings (NASDAQ: KXIN)
Kaixin Auto Holdings (NASDAQ: KXIN) is the leading provider of used cars across China. The fact of the matter is that when economic conditions are concerning, consumers are far less likely to make large purchases. That has been the case as the result of a Trade War between the United States and China.
However, with Biden coming into office, tensions will likely subside, leading to economic improvement across China. Ultimately, this will lead to improved consumer confidence and a willingness among Chinese consumers to make large purchases. That means demand is going to climb for used cars, which bodes well for KXIN stock. So, keep this one on the radar.
Alibaba (NYSE: BABA)
Alibaba (NYSE: BABA) is often looked at as the Amazon.com of China. However, the company’s services span far beyond eCommerce. In fact, Alibaba is a key player in eCommerce, streaming content, financial services, and several other areas across China.
As the country’s largest digital conglommerate, BABA will likely benefit greatly from an improving Chinese economy. Moreover, due to recent and dramatic declines as the result of the regulatory block of a spin off, BABA stock is currently trading at what I believe to be a strong discount.
China Mobile (NYSE: CHL)
China Mobile (NYSE: CHL) is China’s leading mobile services provider, offering both 5G and 4G services. Currently, the comapny serves nearly a million customers with more than 128,000 customers carrying a 5G package.
China Mobile is also one of the leading big data companies in China. Ultimately, we live in the age of the data economy, with data being one of the most valuable assets in the world.
All in all, as a leading mobile and big data company in China, CHL is likely to benefit greatly from the Biden Presidency.
Cannabis Stocks Are Expected To Climb
Finally, cannabis stocks are likely to benefit greatly from a Joe Biden Presidency. Over the past several years, we’ve seen regulatory changes sweep the United States. Moreover, outside of the United States, Canada has made recreational cannabis legal for adult use and other countries have begun to lax their laws.
Many suggest that Joe Biden will make cannabis legal in the United States on a federal level. Not only have democrats historically been more friendly to the cannabis community, Biden plans on making very expensive moves, and cannabis has the potential to become a key driver of tax revenue. With that said, some of the best cannabis stocks to buy for a Biden Presidency include:
Sundial Growers (NASDAQ: SNDL)
Sundial Growers (NASDAQ: SNDL) is a risky play, but could quickly become a big win. The company has fallen on hard times. As a result, it has decided to explore strategic alternatives, with one of the key alternatives investors are watching for being the potential acquisition of the company.
Recently, SNDL has dialed down on its dried cannabis flower efforts and ramped up its vape efforts. With vape being a growing trend across the cannabis sector, this move makes it a prime acquisition target. Moreover, with the idea the the Biden Adminsitration will lead to the federal legalization of cannabis, now is the perfect time for big players to move forward with an acquisition or two in order to capture the coming market.
All in all, SNDL stock is one to watch closely.
Trulieve Cannabis (OTCMKTS: TCNNF)
Turlieve Cannabis (OTCMNKTS: TCNNF) is one of the top players in the United States cannabis sector. Moreover, the company has one thing that many in the cannabis sector simply dont, profits.
Over the past several years, TCNNF has been expanding its offerings and locations across legal cannabis markets across Florida. However, should cannabis become legal on a federal level, the company is likely to quickly expand across the United Startes.
With federal legalization likely on the horizon, there are two likely outcomes for the stock, and they are both great news. Either a large player will acquire the company in order to take control of the large Florida cannabis market, or federal legalization wil lead to a rapid expansion across the company. Either way, TCNNF stock is hard to ignore.
Aphria (NASDAQ: APHA)
Aphria (NASDAQ: APHA) is one of the biggest cannabis growers and distributors in Canada. However, the company’s reach goes far beyond its home country.
As is the case for other large cannabis growers in our neighboring country, when the United States legalizes cannabis on a federal level, it will open the floodgates to revenue. After all, once cannabis is federally legal, Canadian imports will be big business.
As such APHA is a stock that’s well worth watching under a Joe Biden Administration.
OrganiGram Holdings (NASDAQ: OGI)
Finally, OrganiGram (NASDAQ: OGI) is yet another large Canadian producer of cannabis. While the company has had a brutal 2020 year, sales trends in the third quarter were starting to pick up, setting the stage for strong growth ahead.
Should the United States legalize cannabis on a federal level, this growth will likely be exacerbated. After all, the company will be able to quickly expand into the largest cannabis market in the world.
The Bottom Line
The bottom line here is simple. As Biden takes office, major opportunities will begin to emerge in the stock market. In my view, the stocks listed above represent the best stocks to buy for a Biden win, but they’re not the only equities that are likely to climb. What are some of the stocks you’re watching following the Biden win? Let us know in the comments below!
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