3 Stocks to Buy After Biden’s State of the Union Address

  • Here are the stocks to buy following President Joe Biden’s State of the Union address.
  • Intel (INTC): The company was named personally by Biden in his speech.
  • NextEra Energy (NEE): A dynamic energy innovator set to benefit from the green boom.
  • Quanta Services (PWR) Quanta has strong ties to the electrical grid space.
President Joe Biden giving a speech against a dark black background
Source: shutterstock.com/Luca Perra

Last night, President Joe Biden took the stage in front of millions of Americans to deliver this year’s State of the Union address. Coming off a year marked by high inflation rates and rising utility costs, he faced a divided nation with plenty of questions.

Biden seized on the opportunity to provide updates on the concerns many people have, touting the progress of the economy under his administration and focusing on the benefits for workers. Biden also highlighted the importance of creating jobs for those without college degrees and proposed a new tax for America’s billionaire class. With President Biden focused on progress, though, investors should be considering the best stocks to buy as the country enters a new economic chapter.

As the president stated:

“I ran for President to fundamentally change things, to make sure the economy works for everyone so we can all feel pride in what we do […] To build an economy from the bottom up and the middle out, not from the top down. Because when the middle class does well, the poor have a ladder up and the wealthy still do very well. We all do well.”

InvestorPlace contributor Josh Enomoto recently suggested that investors should tune into the event looking for comments from Biden on developments that can move markets. Following the speech, much of the financial community is likely more focused the president’s stock buyback tax proposals. But the country is also preparing for a year marked by lower interest rates and new bull market conditions. This means new opportunities for investors seeking stocks to buy as the economy turns a corner.

Let’s take a closer look at three companies investors should be watching now:

Stocks to Buy: Intel (INTC)

The Intel logo in blue on a black screen.
Source: Kate Krav-Rude / Shutterstock.com

This tech giant was the only company to receive a personal mention from Biden during the address. Intel (NASDAQ:INTC) has been highly volatile lately, but that may be about to change.

In his speech, Biden touted Intel’s recent expansion efforts while highlighting the benefits for U.S. workers. He added that many of the jobs created by Intel won’t require college degrees:

“Outside of Columbus, Ohio, Intel is building semiconductor factories on a thousand acres – a literal field of dreams […] That’ll create 10,000 jobs. 7,000 construction jobs. 3,000 jobs once the factories are finished.”

This praise from President Biden could create the type of momentum Intel needs to start rising again. INTC stock has been trending downward for months, making now an ideal opportunity to buy shares on the dip.

This isn’t the first time Intel has benefited from Biden being in office. In August 2022, when Biden signed the $280 billion CHIPS Act, The Oregonian theorized that Intel may be the deal’s “biggest winner.” InvestorPlace contributor Vandita Jadeja also recently noted the company’s significant growth potential as an undervalued chipmaker.

NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screen
Source: madamF / Shutterstock.com

Of course, Biden also touched on climate action in the State of the Union address, stressing the importance of the Inflation Reduction Act (IRA). This means a new focus on clean energy as Biden’s administration gears up to prioritize green technology.

Whenever investor focus turns toward the best stocks to buy for a green boom, NextEra Energy (NYSE:NEE) stock should be at the top of the list. This clean energy innovator has a truly dynamic reach over the entire sector, with holdings in the areas of wind power, solar energy and electric vehicle (EV) charging infrastructure.

The House of Representatives is currently gridlocked, which may pose difficulties for certain initiatives. But even among conservative voters, support for clean energy solutions has been growing. That suggests that the green tech boom will continue growing into the new year.

As InvestorPlace contributor Josh Enomoto notes, NextEra boasts both strong fundamentals and impressive support from Wall Street, receiving a “strong buy” consensus from analysts. This puts it in an excellent position to continue growing as demand for its valuable services also increases. According to Global Portfolio Manager Trent Masters of Alphinity, NEE may be recession-proof. Masters cited NextEra’s strength even in a potentially complicated economy.

Stocks to Buy: Quanta Services (PWR)

Numerous electric lines are seen at sunset.
Source: Pand P Studio / Shutterstock.com

Another key element Biden repeatedly emphasized in his address was infrastructure. He stressed the importance of rebuilding U.S. highways, bridges and cities, especially with materials made in America. Biden has also made it clear that his administration is committed to the funding of new projects by passing the Bipartisan Infrastructure Law. This new policy will benefit most U.S. construction firms, although one company stands out in particular.

Quanta Services (NYSE:PWR) is a leader in the field of electrical grid development, maintenance and repair. This niche position means that Quanta can benefit from both the focus on clean energy as well as infrastructure. InvestorPlace contributor Larry Ramer noted last year:

“Given its array of businesses, Quanta is very well-positioned to benefit from multiple powerful trends. These include the proliferation of electric vehicles, which, as we’re seeing in California, will require an extensive strengthening and extension of electric grids.”

Like NextEra, Quanta has a dynamic, multifaceted reach across sectors. The company is in prime position to keep growing over the next two years as the focus on energy and infrastructure only heightens.

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.comPublishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/3-stocks-to-buy-after-bidens-state-of-the-union-address/.

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