The political landscape for the upcoming presidential election has drastically changed following President Joe Biden’s unexpected withdrawal from the race. This move has enabled Vice President Kamala Harris to secure the Democratic nomination, presenting a new dynamic in the race against former President Donald Trump. Investors are now advised to explore market opportunities that could thrive under a potential Harris administration.
In similar instances previously, the race dynamic shifted significantly when a major candidate exited. For example, when John McCain suspended his campaign in 2008 due to the financial crisis, it allowed Barack Obama to gain a substantial lead. In contrast, Harris’s quick nomination could create a more competitive environment, potentially narrowing the gap between candidates. Historically, such shifts have had considerable impacts on market trends and investor sentiment.
Close Race Between Candidates
With Biden out of the race, the competition has become more intense. Vice President Kamala Harris’s nomination has brought new focus on various industries. As the election approaches, investors are paying close attention to sectors that might benefit from her policies.
Evergy (EVRG) emerges as a key player in the renewable energy sector. The utility company, primarily serving Kansas and Missouri, derives nearly half of its power from carbon-free sources. A plan to phase out coal operations by 2028 could position Evergy favorably under Harris’s administration, which is likely to promote green energy. The stock has seen an 11% rise this year, and analysts maintain a buy rating, foreseeing a significant upward valuation should Harris win the presidency.
Potential Winners in a Harris Administration
Rivian Automotive (RIVN) could also stand to gain from a Harris administration. The electric vehicle manufacturer’s partnership with Volkswagen, although primarily focused on software, may see renewed interest under policies encouraging EV production. Despite skepticism due to its volatile stock performance, Rivian’s potential to benefit from Harris’s green initiatives cannot be ignored. Analysts predict a 30% upside, especially with the upcoming release of its lower-cost R2 SUV.
Green Thumb Industries (GTBIF) is another candidate for growth, given Harris’s stance on marijuana legalization. The cannabis company operates 97 retail locations and 20 manufacturing facilities in 14 markets. With Harris’s potential support for federal legalization, Green Thumb could see its earnings and stock valuation soar. The company already reported an 11% increase in sales this quarter, with significant positive earnings since 2020.
A Harris presidency could bring substantial changes in policy direction affecting various industries. Renewable energy, electric vehicles, and cannabis stocks are positioned to benefit significantly. Investors should consider these sectors while monitoring the evolving political landscape and its impact on market opportunities.
