5 stocks that will rally with Biden’s victory

These 5 stocks can rally tenfold with Biden’s victory. With the US presidential elections now upon us, investors are paying attention to the possible political implications on the financial markets. Although the election outcome is uncertain, it is crucial to consider how different outcomes could impact specific sectors of the economy and, consequently, investment opportunities.

For those who believe that the incumbent president can secure a second term, actions oriented toward progress and innovation could be the best choice.

Democrats’ policies, geared towards a sustainable and inclusive future, could boost sectors such as clean energy and advanced technology. However, the overlap of interests between the two political factions makes the panorama of electoral actions a complex and not-at-all obvious terrain.

In this context, let’s see the 5 most interesting stocks in the case of a second term for Biden.

1. Vulcan Materials (VMC)

Vulcan Material weekly graph

Source: Tradingview

Vulcan Materials, the construction giant, emerges as one of the main players in the actions linked to a possible victory of Joe Biden. With its dominant position in the building materials sector, Vulcan could benefit significantly from a possible Democratic administration. Biden’s proposed infrastructure development plan, known as “Build Back Better,” could be a key catalyst for the company. Its production of construction aggregates, which includes crushed stone, sand, and gravel, is critical for large-scale construction projects, such as roads, bridges, and buildings.

Under a democratic government that strongly promotes infrastructure investment, the expectation is that demand for construction materials will increase significantly. Vulcan, with its extensive network of operations and proven industry expertise, is optimally positioned to capitalize on this growing demand. Additionally, Biden’s focus on innovation and sustainability could lead to more modern and environmentally friendly infrastructure projects, opening up new market opportunities for Vulcan.

Goldman Sachs is optimistic about the stock, indicating a "buy" rating and a target price of $292. Truist Securities analysts confirm the buy with a target price of $300.

2. First Solar (FSLR)

First Solar weekly graph

Source: Tradingview

First Solar is another stock that could increase tenfold in value if Biden wins. The Biden administration has clearly expressed strong support for solar energy as part of its strategy to address the climate crisis and advance the transition to a low-carbon economy. This commitment was manifested with the approval of numerous clean energy projects by the Department of the Interior, which has created a favorable climate for companies in the sector, including First Solar.

Its established presence in utilities and large solar energy providers positions it strategically to capitalize on emerging opportunities in the renewable energy market. Additionally, the company benefits from U.S. tax credits for domestically produced solar panels, confirming its commitment to domestic manufacturing and environmental sustainability.

Financially, First Solar demonstrated a solid performance, with a 15.6% year-over-year increase in revenue (to $1.16 billion) and earnings per share of $3.25 that surpassed earnings per share. forecasts. Analysts are optimistic about the company’s prospects, assigning a "strong-buy" rating and indicating a significant 12-month growth potential of at least 40%.

3. Unilever (UL)

Unilever weekly graph

Source: Tradingview

Unilever, a British multinational consumer goods company, emerges as an attractive option for investors considering the possible implications of a Joe Biden victory. With a diverse portfolio that includes iconic brands such as Dove, Knorr, Lipton, and Ben & Jerry’s, Unilever holds a leadership position in numerous key sectors of the consumer goods market.

Regardless of the election outcome, Unilever represents a stable and reliable choice for investors, offering essential products that are demanded by consumers around the world. However, a Biden victory could lead to additional opportunities for the company, given its emphasis on sustainability, social inclusion, and equity.

During the most critical moments of the COVID-19 pandemic, Unilever demonstrated proactive leadership in addressing global challenges, recognizing systemic inequalities, and seeking ways to level the playing field. Additionally, the company has made significant progress towards sustainability, earning approvals from organizations such as People for the Ethical Treatment of Animals (PETA) for its ethical and environmental policies.

A Biden victory could further solidify Unilever’s role as a company at the forefront of sustainability and social inclusion. Implementing more progressive policies could lead to a greater emphasis on initiatives to reduce the environmental impact of products and promote diversity and inclusion in the workplace.

Furthermore, Unilever could benefit from a possible increase in consumer spending, spurred by more progressive economic policies, thanks to its broad range of consumer products.

4. Microsoft (MSFT)

Microsoft weekly graph

Source: Tradingview

Microsoft, an early global tech giant, stands out as a promising option for investors considering the implications of a Joe Biden victory. The company is at the center of multiple initiatives, aligned with the objectives of the future Democratic administration. With a wide range of products and services, Microsoft occupies a leading position in the fields of technology, education, and innovation in AI.

The White House’s vision is not only about advancing science and technology but also about eliminating barriers that prevent all students from benefiting from STEM (Science, Technology, Engineering, and Mathematics) education. Microsoft has demonstrated a strong commitment in this regard, launching global initiatives to promote diversity and inclusion in STEM fields and encourage women’s participation in these disciplines.

Additionally, Microsoft is committed to achieving ambitious environmental sustainability goals. With its announcement to become carbon-negative by 2030 and eliminate historic emissions by 2050, the company demonstrates a strong commitment to combating climate change and protecting the environment.

Under a potential Biden presidency, an emphasis on technology, education, and sustainability could lead to further growth opportunities for Microsoft. The company positions itself as a successful example of progressive policies, offering innovative solutions to address global challenges and create a more inclusive and sustainable future.

According to JPMorgan, Microsoft is a “buy,” with a price target of $440. That’s because Copilot, Microsoft’s generative AI product, is set to revolutionize the company’s security capabilities, paving the way for a paradigm shift.

5. Taiwan Semiconductor Manufacturing (TSM)

Taiwan Semiconductor Manufacturing weekly graph

Source: Tradingview

Taiwan Semiconductor Manufacturing Company (TSMC), a leading semiconductor company, presents itself as an attractive option for investors considering the implications of a Joe Biden victory. The company is at the center of efforts to revitalize the U.S. semiconductor industry, joining forces to bring supply chains home and promote innovation and national security.

TSMC’s decision to establish manufacturing facilities in the United States and Japan responds to the growing need to reduce dependence on foreign supplies and strengthen domestic manufacturing employment. This strategic move will not only help ensure access to critical semiconductors but also create new job opportunities and support the U.S. economy.

Despite some delays in the start-up of its Arizona plants due to a shortage of skilled workers, TSMC continues to maintain a leadership position in the industry. The recent opening of the first microchip plant in Japan is a testament to the company’s commitment to meeting the growing global demand for semiconductors and diversifying its global presence.

From a financial perspective, TSMC enjoys robust economic health, with continually growing revenues and an EPS that exceeds analysts’ expectations. The company continues to invest in research and development to maintain its competitive edge in the semiconductor industry and to meet the increasingly complex needs of its customers.

Bernstein Research recently confirmed an “outperform” rating and set a new price target of $150, up from $125 previously.

|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|

Original article published on Money.it Italy 2024-03-17 13:00:00. Original title: 5 azioni che possono volare con la vittoria di Biden