3 Stocks to Buy as Kamala Harris Races to the Democratic Nomination

Over the weekend, President Joe Biden caught the nation’s attention when he announced that he will not seek a second term. He wasted no time, quickly endorsing Vice President Kamala Harris for the Democratic nomination. And now, just a few days later, she has secured enough delegates to clinch it. With this high-stakes election taking a new turn, investors can officially start looking for the best stocks to buy if Democrats — and particularly Harris — retain control of the White House for the next four years.

After the first presidential debate, victory by former President Donald Trump seemed like an almost certainty. Now that Harris is already smashing fundraising records just days after Biden’s withdrawal, some investors may want to rethink their strategy for remaining ahead of the market in a complicated election year.

As the Financial Times reported yesterday:

“In early trading, some recent market moves associated with a Donald Trump election victory — such as a steeper US yield curve, a weaker Mexican peso and a rally in regional bank stocks — went into reverse, as investors bet the former president’s odds of victory had receded.”

With the chances of a Trump victory diminishing, it makes sense to start looking at stocks to buy for a Harris presidency. Given her time as Biden’s VP, she would likely focus on the policy areas that he prioritized while in office. Let’s take a look at the sectors and companies best positioned to benefit.

Rivian (RIVN)

The Biden administration has recognized the need for electric vehicles. Over the past four years, it has introduced initiatives to spur domestic EV production and make it easier for Americans to make the switch to driving electric. This means EV stocks will be well positioned to grow under a Harris presidency. And Rivian (NASDAQ:RIVN), an electric truck and SUV producer that makes its vehicles on U.S. soil, will likely be leading the pack.

Automakers that build EVs will stand to benefit even more if Harris selects Secretary of Transportation Pete Buttigieg as her running mate.

During his time in this role, Buttigieg has defended the Biden administration’s position on EVs, making strong cases for why they are necessary. If he and Harris make it to the White House, they will likely prioritize policies that will help Rivian and other U.S.-based EV producers soar.

NextEra Energy (NEE)

If the next era of clean energy happens under a Harris administration, this company should be at the top of every smart investor’s list of stocks to buy.

NextEra Energy (NYSE:NEE) is a leader in many facets of alternative energy solutions, including solar power, wind, and energy storage. Given the Biden administration’s history of prioritizing clean energy development, it makes sense that Harris would take it even further as climate change progresses. This would put NEE stock in an excellent position to keep rising. As InvestorPlace contributor Alex Sirois notes:

“NextEra Energy produces significant amounts of renewable energy through its solar and wind energy business. Energy demand is surging due to artificial intelligence (AI) growth, especially at the data centers. Large hyperscaler firms have promised to reduce their carbon emissions while simultaneously consuming much more power. The same firms have landed on renewable energy as the solution. That suggests NextEra Energy will continue to do well while providing downside protection through its utilities business.”

Trulieve Cannabis (TCNNF)

Since news broke of Biden dropping out, many cannabis stocks have been in the green.

Democratic administrations tend to favor pro-cannabis policies much more than Republican ones do. As a result, the prospect of a Trump defeat bodes well for U.S.-based companies in the cannabis space.

Trulieve Cannabis (OTCMKTS:TCNNF) doesn’t receive as much attention as some of its peers, but it has been one of the industry’s best performers lately. As contributor Hope Mutie recently shared:

“Going by its recent market performance and fundamentals, Trulieve is one of the most promising undervalued cannabis stocks right now. At the current going price of $9.90, shares are up nearly 90% from the turn of the year when they traded at the ballpark of $5 apiece.”

Since Mutie wrote that on July 12, shares have risen roughly $1 and currently trade at $10.90. But Trulieve is still an undervalued stock in a prime position to keep rising if Harris’ election momentum continues. The company is currently benefitting from positive Wall Street sentiment, which will likely continue as the campaign heats up.

On the date of publication, Samuel O’Brient did not have (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.