With the Iowa Caucus safely behind us, the 2024 presidential election season officially starts. As of now, there seems to be little doubt among most voters that the race will be between President Joe Biden and former President Donald Trump. The latter’s recent Iowa victory over fellow Republican candidates further strengthened the popular thesis that Trump has effectively secured the GOP nomination.
That seemed to be the consensus at the recent World Economic Forum, at which some of the world’s business leaders convened. I wasn’t there, but hedge fund manager and former Trump administration insider Anthony Scaramucci shared that many Davos attendees are expecting a Trump victory in 2024. But Scaramucci thinks investors should be looking for the best stocks to buy if the opposite outcome unfolds.
3 Stocks to Buy for a Biden Victory
Scaramucci knows a few things about how Trump operates. He briefly served as the former president’s director of communications. Since leaving that post, he has been an outspoken Trump critic. When I heard him give a speech at Trinity College Dublin in 2020, he urged students to prepare for a difficult road ahead. This time around, though, he doesn’t see Trump winning, despite the consensus at Davos. As POLITICO reports:
“Scaramucci argues that Trump is not well-liked outside his base. He says America’s bloc of independent voters will be turned off by reminders of the former president’s ‘craziness’ and the Jan. 6, 2021, riot at the Capitol. There’s litigation tied to election interference and legal disputes about Trump’s standing on the ballot. The economy’s ‘halfway decent.’”
If this thesis is correct and Biden is reelected in 2024, investors can likely prepare for the economic growth that we’ve seen this year to continue. But that doesn’t mean all companies will benefit the same way. Here are three stocks that are in prime position to deliver excellent returns during Biden’s second term.
Stocks to Buy: NextEra Energy (NEE)
We know that Democrats are focused on investing in renewable energy. The Biden administration has proven that repeatedly, investing in clean energy and laying out plans for taking this mission further. Anytime that the green revolution picks up steam, Next Era Energy (NYSE:NEE) will be helping lead the charge. This renewable energy standout is one of the country’s top producers of wind and solar power.
As InvestorPlace contributor Rich Duprey reports, “NextEra represents one of the nation’s largest capital investors in infrastructure. In 2022, the company had planned between $50 billion to $55 billion in new infrastructure investments.”
It’s been a difficult year for NEE stock due to macroeconomic headwinds that have made things difficult for the entire sector. But if Biden wins in 2024, the entire clean energy sector will likely see a boost and NextEra’s next era will be a profitable one.
Curaleaf Holdings (CURLF)
Cannabis stocks have been in focus this week after scientists recommended loosening federal laws that restrict its use. This is excellent timing for the drug, as Democratic leaders tend to look more favorably on it than Republicans. If the Biden administration sizes the opportunity to enact meaningful cannabis reform, it could boost many stocks. Four more years would ensure that this momentum continues.
Curaleaf Holdings (OTCMKTS:CURLF) is an excellent pick for anytime the sector catches fire. The Massachusetts-based company is more stable than many of its competitors and has been rising steadily for the past two quarters. With year-to-date (YTD) gains of 22%, the company has proven it can hold its own in less-favorable economies. It has also shown a clear ability to innovate while expanding into Europe and helping conquer the medical marijuana market.
Stocks to Buy: Blink Charging (BLNK)
It isn’t just clean energy that the Biden administration is focused on. This week brought news that the White House plans on investing $623 million in building out an electric vehicle (EV) charging network across many states. This is great news for companies that build the infrastructure that has helped power the current EV race. And Blink Charging (NASDAQ:BLNK) has emerged as the sector’s de facto leader.
Positive sentiment toward BLNK from institutional investors has been rising lately. Ken Griffin of Citadel Securities recently revealed a bet on it. An analyst from Needham has also issued a bullish price target, predicting better days ahead. If Biden is reelected, Blink will be in an even better position to keep rising as the administration continues its focus on clean energy and EV infrastructure.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.