It’s official: Joe Biden is now the Democratic nominee for president. The former vice president received the formal nomination during the Democratic National Convention Tuesday night.
Biden leads President Donald Trump in the RealClearPolitics average of national polls by 7.6 percentage points, and is also polling for Trump in enough key battlefield states to have a significant advantage over the Electoral College.
If Biden maintains his lead until November, he will bring a new policy agenda to Washington that will have major implications for the economy. These policy changes could be excellent news for a number of American industries, and those now investing in strong companies within those sectors could set themselves up for profit. With that in mind, here are three great stocks to buy if you think Joe Biden will win the election.
Image Source: WhiteHouse.gov.
1. Brookfield renewed
Biden places a high priority on transitioning the United States away from its heavy reliance on fossil fuels and toward greater use of clean, sustainable energy. In particular, he plans to create incentives for companies to reduce the U.S. carbon footprint by 50% within the next 15 years. As one of the top companies for sustainable energy, Brookfield updated (NYSE: BEP) (NYSE: BEPC), should be a big winner with Biden in the Oval Office.
Brookfield Renewable owns and operates hydroelectric, wind, solar, and energy storage facilities around the world. Roughly half of its current energy generation capacity of more than 19,000 megawatts is in North America. The company aims to harness capacity in a big way: It has 18,000 megawatts of projects in its development pipeline.
With Biden as president, Brookfield Renewable could find it even easier to achieve its expansion plans. That could enable the company to achieve its goal of delivering average annual returns between 12% and 15%. It could also allow the company to grow its dividend, which is currently yielding close to 4%.
2. Green Thumb Industries
Biden does not support the full federal legalization of recreational marijuana. But American cannabis companies will probably still be ecstatic when he becomes president. For one thing, the Unity Task Force was founded by Biden and sen. Bernie Sanders out in support of the federal legalization of cannabis for medical use. More importantly, the task force recommended that federal laws be amended to recognize the rights of states to make their own decisions regarding the legalization of recreational pot. Assuming that a Biden administration adopts this policy, Green Thumb Industries (OTC: GTBI.F) would be a natural advantage.
The company operates 13 manufacturing facilities in the U.S., and owns and operates a chain of 48 retail cannabis stores in 12 states. That number should continue to grow rapidly, given that the company has licenses for 96 retail locations. If medical cannabis were legalized at the federal level, the expansion of Green Thumb could accelerate dramatically.
The company’s market cap of about $ 3.2 billion is roughly half of the top Canadian cannabis producer Canopy Growth. But Green Thumb generated more than 40% higher revenue in its last four years than Canopy. The main reason behind the divorce rating is the fact that cannabis is currently illegal in all forms under U.S. federal law, while in Canada it is completely legal. Under a Biden presidency, that could just change what could open the gates for Green Thumb’s stock to take off.
3. Teladoc Health
Biden wants the federal government to support the use of telehealth throughout rural America, especially for mental health and special care. He also considers telemedicine to be an important component in the fight against the COVID-19 pandemic. Both stands could be good news for Teladoc Health (NYSE: TDOC).
Teladoc stands as the global leader in telehealth, offering virtual healthcare services in 175 countries. These services mainly include behavioral care, but the company’s physicians connect patients with coverage of more than 450 medical subspecialties. The acquisition of Teladoc earlier this year from InTouch Health also makes the company a leader in hospital-to-home telemedicine.
The coronavirus pandemic has driven an intense increase in the use of telehealth services. It has also encouraged the use of the chronic disease platform by offering Livongo Health, a fast-growing company that Teladoc plans to buy. Biden’s policies could encourage increased adoption of virtual care and make Teladoc Health an even bigger winner than it already is.
