Which stocks could thrive in the event of a Kamala Harris presidential victory?
Another close presidential election is imminent and investors should already start thinking about where the best opportunities may lie, depending on which US presidential candidate wins.
Which two stocks are likely to soar if the Democrats hold the White House?
Brookfield Renewable $BEPC+0.1%
Kamala Harris has a long history of supporting measures to combat climate change. She has already won the support of several groups supporting renewable energy.
As a result, analysts believe that renewable energy stocks in general will see a nice uptick if Harris beats Trump. And Brookfield Renewable is expected to be among the biggest winners.
Brookfield Renewable operates hydro, wind, solar and distributed energy and storage facilities in more than 20 countries. Its current operating capacity is 32,500 megawatts. The company's development plan could add another 157,000 megawatts of capacity.
Analysts think Brookfield Renewable will deliver solid returns over the long term, even if Harris doesn't win. Renewable energy is already the cheapest energy solution in many cases. Energy security and independence are important no matter who is in the Oval Office.
But the company's dividend gives it a big edge in generating attractive total returns. Brookfield Renewable's dividend is 6% and its payout has grown at a compound annual rate of about 6% for the past two decades.
Rivian Automotive $RIVN+1.9%
Rivian
RIVNIn May, Vice President Harris announced new federal investments in the automotive sector. These investments included $50 million in grants to help "automakers and auto suppliers transition to electric vehicle production in America."
If elected, Harris would likely continue her support for electric vehicles. So a Harris victory would be good news for Rivian Automotive.
Rivian is a leading U.S. manufacturer of electric vehicles. It has a market share of over 5% of the electric vehicle market in the U.S. This market share is expected to grow.
Rivian's R1S is already the best-selling electric car in the US with a price tag of over $70,000. Rivian is targeting the lower-priced market with its new mid-size R2, R3 and R3X models, which were introduced earlier this year. It also has a huge customer in Amazon, which wants to deploy 100,000 electric vans from Rivian to reduce carbon emissions.
Rivian's revenue nearly doubled in the first quarter of 2024 compared to the previous year. Although the company is now losing money, it believes it will reach profitability by the end of the year.
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