Investing Insights: Stocks to Watch if Kamala Harris and Democrats Gain Control

According to Decision Desk HQ’s model, Vice President Kamala Harris has a slight edge in the presidential race. However, the Democratic Party may face challenges in Congress. The estimates show a 54% chance for the GOP to maintain its House majority and a 71% chance of regaining a Senate majority.

Despite this, Democrats could gain momentum as the campaign progresses. Here are three stocks investors might consider if Harris and the Democrats succeed in November.

Vice President Kamala Harris. Image source: Official White House Photo by Cameron Smith.

1. D.R. Horton: A Strong Contender

D.R. Horton (NYSE: DHI) is poised to benefit significantly if Harris wins and the Democrats control Congress. As the largest U.S. homebuilder by volume since 2002, D.R. Horton operates in 121 markets across 33 states.

Harris aims to construct 3 million new homes in four years and is proposing $25,000 grants for first-time homebuyers. She also supports tax incentives for builders selling to first-time buyers, potentially enhancing D.R. Horton’s revenue.

Furthermore, a survey from the Financial Times and the University of Chicago indicated that 70% of surveyed economists believe Harris’ policies would lead to lower inflation compared to those of former President Donald Trump. Lower inflation typically correlates with lower interest rates, positively impacting D.R. Horton.

Regardless of election outcomes, D.R. Horton remains well-positioned due to the ongoing housing shortage in the U.S. The solution is clear: more homes must be built.

2. Brookfield Renewable: Embracing Clean Energy

With a long-standing commitment to renewable energy, Democrats—including Harris—promote investments in future energy industries. By easing regulations, Harris aims to speed up the completion of clean energy projects, benefiting Brookfield Renewable (NYSE: BEP) (NYSE: BEPC).

Harris intends to strengthen U.S. energy security and reduce reliance on foreign oil. While domestic oil and gas production is necessary, renewable energy will play a crucial role moving forward.

Brookfield Renewable, one of the largest clean energy producers globally, boasts an operating capacity of about 37 gigawatts, double what it had in 2020, with a development capacity of around 200 gigawatts.

Even if the Democrats don’t achieve sweeping victories, Brookfield Renewable is still likely to thrive. Renewable energy is already the most cost-effective energy source, and electricity demand is rising, driven by the increase in data centers.

3. UnitedHealth Group: Healthcare for the Future

Harris has pledged to make tax credits for health insurance purchases on the ACA marketplace permanent for working and middle-class families. She also aims to expedite Medicare drug price negotiations.

These initiatives will likely benefit health insurers like UnitedHealth Group (NYSE: UNH), the largest health insurer in the sector.

UnitedHealth Group serves individual and family health plan markets in 26 states, with 10.2 million Medicare enrollees in the past year.

Over the long term, an aging population poses a more significant advantage for UnitedHealth than any political shift. With baby boomers retiring, Medicare enrollees are expected to rise significantly by 2030, making Medicare Advantage increasingly critical to UnitedHealth’s growth.

Should you invest $1,000 in UnitedHealth Group right now?

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Keith Speights has positions in Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has positions in and recommends Brookfield Renewable and D.R. Horton. The Motley Fool recommends Brookfield Renewable Partners and UnitedHealth Group. The Motley Fool maintains a disclosure policy.

The views expressed here are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.