Last week, election night gave sighs of relief to Democrat voters across the nation. With most political coverage centering around former President Donald Trump’s legal problems of late, tensions have been rising on both sides of the aisle. But as we saw during the last midterms, the anticipated red wave that had some conservatives pounding the table did not come. Instead, Democrats swept legislative elections in Virginia, severely reducing Republican Governor Glenn Youngkin’s power. In Kentucky, Democrat Governor Andy Beshear also enjoyed a substantial victory. Meanwhile, Ohio citizens voted to enshrine the right to a legal abortion in the state’s constitution.
With momentum shifting in favor of the Democratic Party once again, investors can now double down on the companies poised to benefit from more liberal policies. I recently reported on the trend of Republican politicians attacking electric vehicles (EVs) and promising to curtail their adoption if elected. Now, companies in the clean energy spaces may be among the best stocks to buy for the near future.
Lets take a closer look at the companies best-positioned to keep rising from here.
The Best Stocks to Buy for a “Blue” Future
If the future of the U.S. is “blue” at least in the short term, then green companies will likely enjoy a ride to the top. And by green, I’m referring to multiple sectors. Yes, renewable energy producers will be among the best stocks to buy, but the recent Democratic sweep is also great news for the cannabis space.
Here are the best companies to buy across three of the most-promising sectors:
Electric Vehicles:
- Rivian (NASDAQ:RIVN): This U.S.-based electric truck and SUV maker has proven that it can withstand strong macroeconomic headwinds and continue growing.
- ChargePoint (NYSE:CHPT): Anytime the market is good for EV stocks, the company leading in EV infrastructure development will benefit.
- QuantumScape (NYSE:QS): Some see this EV battery maker as a risky play, but that doesn’t change the fact that its upside potential is huge.
Renewable Energy:
- NextEra Energy (NYSE:NEE): This industry leader has its hands in almost every area of clean energy, including wind and solar.
- First Solar (NASDAQ:FSLR)): While it may have struggled recently, this solar tech innovator seems to have the power to survive the worst of times.
- Bloom Energy (NYSE:BE): Fuel cell energy systems may not be as trendy or well-known as wind and solar, but they are equally important — and Bloom is taking them to new levels.
Cannabis:
- Curaleaf Holdings (OTCMKTS:CURLF): This little-known cannabis producer represents an undervalued growth play on an industry that could thrive with Democrats in power.
- Green Thumb Industries (OTCMKTS:GTBIF): Based in the U.S., this dynamic cannabis play appears more stable than many of its competitors.
- Innovative Industrial Properties (NYSE:IIPR): This unique company bills itself as “the leading provider of real estate capital for the regulated cannabis industry.” That gives it an edge many other cannabis companies can’t offer.
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.
