Former Vice President Joe Biden appears to be way ahead of President Donald Trump in the 2020 White House race. RealClearPolitics’ national poll average shows Biden with a 9.6-point lead over Trump. Biden is also winning in the latest polls in several key key states that are critical to the Electoral College victory. Even Republican pollster Frank Luntz believes the presidential race is “that Joe Biden is going to lose.”
Whoever wins the presidency is important to investors because candidates have different priorities. If you think Joe Biden will defeat Donald Trump in November, here are three great stocks to buy.
Image Source: WhiteHouse.gov
1. Renewable energy: Brookfield Renewable Partners
Joe Biden wants to put the United States on track to achieve “a 100% clean energy economy” by 2050 at the latest. To accomplish this, he plans to sign executive orders and push for Congress to pass legislation that sets milestones to meet key clean energy goals by 2025 if elected as president.
Renewable energy reserves could be big winners under a Biden presidency. Brookfield Renewable Partners (NYSE: BEP) It stands out as an action positioned to perform especially well. Approximately three-quarters of the company’s operating funds (FFO) come from its hydroelectric facilities. However, Brookfield also has solar and wind power generation operations. Your pending acquisition of Terraform will give you an even greater presence in these areas.
Brookfield Renewable’s goal is to generate total returns of between 12% and 15% annually. These returns include the attractive dividend of the company, which currently yields almost 4.4%. I think Brookfield should be able to exceed his goal if Biden settles in the White House in 2021.
2. Infrastructure: Vulcan Materials
One of Biden’s main campaign promises is “to revitalize America’s infrastructure.” He wants to spend $ 1.3 billion over a 10-year period on infrastructure projects. At the top of his list is repairing highways, roads, and bridges. Biden also wants to improve airports, rail infrastructure and ports, as well as modernize schools across the country.
These infrastructure initiatives would surely increase sales of Vulcanic materials (NYSE: VMC). The company ranks as the largest American producer of construction aggregates, such as crushed stone, sand and gravel, and is one of the leading producers of construction materials, including asphalt and ready-mix concrete.
The states in which Vulcan operates are poised to generate 72% of the total growth of the US population in this decade. Nineteen of the 25 fastest growing markets in the United States are served by Vulcan’s operations. It makes sense that these areas are the primary focus of federal infrastructure initiatives.
3. Medical care: UnitedHealth Group
As expected, another important focus for a Biden administration would be medical care. Biden was an advocate of the Affordable Care Act (ACA) when he was vice president. If he becomes president, Biden wants to protect and take advantage of the ACA, which includes giving Americans the option of purchasing a public health insurance plan similar to Medicare.
Such perspectives could be music to the ears of UnitedHealth Group (NYSE: UNH). The country’s largest health insurer benefited greatly when the ACA was enacted. Currently, nearly 28% of UnitedHealth’s income comes from its Medicare programs, including Medicare Advantage, Medicare Supplement, and Medicare Part D prescription drug plans.
Other aspects of Joe Biden’s platform could also help UnitedHealth Group. His plans to lower prescription drug prices and promote generic drug development would likely lower the company’s expenses.
But what if President Trump is reelected?
However, the US presidential election is still four months away. That is long enough for the political winds to change. It is still quite possible that Joe Biden’s current leadership will evaporate. How would these three actions work if President Trump is reelected? Probably pretty good.
Brookfield Renewable Partners appears to be in a good position to offer strong total returns, whichever candidate wins the presidency. Several key US states along with major countries have renewable energy targets that work for the benefit of the company.
It is a similar story for Vulcan Materials. Like Joe Biden, President Trump says he wants a big infrastructure effort and is reportedly considering proposing spending of close to $ 1 trillion.
UnitedHealth Group probably wouldn’t do as well in a second Trump term as a Biden government. However, the health insurance stock has soared more than 80% since President Trump took office.
The bottom line is that if you think Joe Biden will defeat Donald Trump in November, Brookfield Energy Partners, Vulcan Materials, and UnitedHealth Group should be good bets. And even if you’re wrong, all three stocks still have strong prospects.
