With the New Year just under way, investors are looking to position themselves in the proper industries that could benefit from an Obama led White House. Based on what was said during his campaign, the industries that appear to have the most to gain from his election are alternative energy, infrastructure, and healthcare.
President-elect Obama expects to spend around $150 billion over 10 years on renewable energy and energy efficiency projects. In addition, President-elect Obama is pushing a stimulus package that would funnel government money into bridges, roads, and railroads. Lastly, the president-elect is calling for more coverage for preventive healthcare services, like cancer screenings, to try and cut down on the fatality rate of certain conditions.
There are several companies in the alternative energy industry that could benefit from Barack Obama’s election, but since most of them are not profitable they would be considered highly risky. To help defer some of the risk with investing in alternative energy, it makes more sense to invest in an Exchange Traded Fund (ETF) that provides diversified exposure to the sector. One such ETF is Market Vectors Global Alternative Energy ETF (NYSE: GEX). This ETF invests in alternative energy companies both domestically and worldwide.
One specific company that could benefit Barack Obama’s renewable energy bill is First Solar (NASDAQ: FSLR). First Solar (NASDAQ: FSLR) is located in Tempe, Arizona and designs, manufactures, and sells solar electric power modules using a thin film semiconductor technology. They sell their products to operators of renewable energy projects primarily in Europe, but also participate in designing and deploying commercial solar projects for utilities in the United States.
President-elect Obama’s infrastructure stimulus package is aimed at both repairing antiquated roads and bridges and providing a boost to the economy in the form of job creation. Two companies that are positioned to benefit from this stimulus package include Valmont Industries (NYSE: VMI) and Caterpillar (NYSE: CAT).
Valmont Industries (NYSE: VMI) produces fabricated metal products and steel and aluminum poles and structures to which traffic lighting for streets and highways are attached. Valmont Industries (NYSE: VMI) works with both state and federal governments, contractors, and utility and communication companies.
Caterpillar (NYSE: CAT) is one of the leading companies in the manufacturing and sale of construction equipment worldwide. Its machinery business includes the design, manufacturing, marketing, and sale of machinery, mining, and forestry equipment. It is almost impossible to embark on an infrastructure rebuilding plan without the use of Caterpillar’s machinery.
Lastly, the Healthcare industry looks to benefit from the President-elects preventive healthcare plan. More specifically, generic drug manufacturers and stores that offer in-store healthcare clinics should benefit from this plan. Teva Pharmaceuticals (NASDAQ: TEVA) develops, manufactures, and markets generic and human pharmaceuticals worldwide. Some of their products include Copaxone, which treats Multiple Sclerosis, and Azilect, which treats Parkinson’s disease. In addition, it offers specialty respiratory products and inhalers such as Easi-Breathe and Spiromax/Airmax.
CVS Caremark Corporation (NYSE: CVS) operates retail pharmacy businesses in the United States. The company offers, over-the-counter drugs, prescription medication, and in-store healthcare clinics, which operate under the MinuteClinic name. With the increased focus on preventive healthcare, expect more people to take advantage of and use the in-store healthcare clinics as a more affordable option as compared to visiting a doctor’s office.