The upcoming presidential election could be close. It’s not too early for investors to start thinking about the best opportunities, depending on who wins.
I’ve already written about stocks that I expect to perform well. If Republican presidential candidate Donald Trump winsHowever, Vice President Kamala Harris — the presumptive Democratic presidential nominee after President Joe Biden dropped out of the race — has changed the dynamics of the campaign.
Which stocks are likely to rise if Democrats hold onto the White House? I predict three stocks will rise if Harris wins in November.
1. Brookfield Renewable Energy
Harris has a long record of supporting ways to address climate change, and has already won the endorsement of several groups that support renewable energy.
I suspect Renewable Energy StocksOverall, he should have a good boost if Harris beats Trump. I expect Brookfield Renewable (NYSE: BEP) (NYSE: BPC) And will be among the biggest winners.
Brookfield Renewable Energy operates hydropower, wind, solar, distributed energy and storage facilities in more than 20 countries. It currently has 32,500 megawatts of operating capacity. The company’s development pipeline could add another 157,000 megawatts of capacity.
I think Brookfield Renewables will deliver strong returns over the long term, even if Harris doesn’t win. Renewables are already the lowest-cost energy solution in many cases. Energy security and energy independence are important, no matter who sits in the Oval Office.
The company’s distribution gives it a significant advantage in generating attractive total returns. Brookfield Renewable’s distribution yield is 6%, and its distribution has grown at a CAGR of about 6% over the past two decades. Brookfield expects annual distribution growth of between 5% and 9% over the long term.
2. Rivian Motor Company
In May, Vice President Harris announced new federal investments in the auto sector, including $50 million in grants to help “automakers and auto suppliers transition to electric vehicle manufacturing here in America.”
She is likely to continue her support for electronic voting if elected in November. A Harris win would be good news for Rivian Automotive (NASDAQ:RIVN).
Rivian is a leading electric vehicle company in the United States. It has over 5% of the U.S. electric vehicle market share. I expect this market share to grow.
The company’s R1S is already the best-selling electric vehicle in the U.S. priced at more than $70,000. Rivian is targeting the lower-cost market with its new midsize R2, R3 and R3X, which were unveiled earlier this year. It also has a huge customer base in Amazonwhich wants to deploy 100,000 Rivian electric delivery trucks to reduce carbon emissions.
Rivian’s revenue nearly doubled year-over-year in the first quarter of 2024. Although the company is losing money now, it is confident it will achieve profitability later this year.
3. Truleaf Cannabis
Harris’ views on cannabis have changed over time. She now supports legalizing marijuana. This could be a particularly good sign. Trulif Hemp (OTC: TCNNF) If you defeat Trump.
Trulieve dominates the medical cannabis market in Florida and holds market leadership positions in Arizona and Pennsylvania. The company operates more than 200 dispensaries.
Harris’s presidential campaign could directly boost Truleaf’s fortunes. How? Floridians will vote in November on whether to legalize adult-use cannabis.
Democrats tend to support marijuana legalization more than Republicans, and with Harris’s entry into the presidential race exciting Democratic voters, more of them may head to the polls to vote for her — and to legalize recreational marijuana in Florida.
Truleaf would likely be able to easily expand its lead in Florida’s medical cannabis market into the adult-use cannabis market if marijuana is legalized. And Harris doesn’t have to win Florida to help the company — and the stock.
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John Mackey, the former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Spits The Motley Fool has positions in Amazon, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has positions in and recommends Amazon, Brookfield Renewable, and Trulieve Cannabis. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has Disclosure Policy.
Prediction: These 3 Stocks Will Soar If Kamala Harris Wins in November Originally posted by The Motley Fool
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