Investing for the Election: 6 Vaccine Stocks to Buy for Operation Warp Speed

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6 Vaccine Stocks to Buy for Operation Warp Speed

[Monday, August 24, 4:25 pm]
Contributed by Sarah Smith

Investors have long realized that vaccine stocks are a great way to play the novel coronavirus. They have been some of the best stocks to buy amid the pandemic, particularly as Wall Street has leaned into the idea that widespread vaccination will bring about a return to normal. Such a return to normal would mean in-person learning, reopened businesses and a revitalized economy.

On Monday, investors are also getting a good look at the sort of political catalysts behind these stocks.

Reports over the weekend began to circulate that the White House — through the U.S. Food and Drug Administration — would grant early approval to a vaccine candidate from AstraZeneca (NYSE:AZN) and the University of Oxford. Clinical data thus far supports that the candidate is safe and can generate an immune response, but human trials within the U.S. are just kicking off.

Some are responding to the news with lots of excitement. Monday morning saw airline stocks and cruise operators rallying. Any industry that would benefit from vaccination seemed to climb. But others are worried that Trump could rush vaccine approval to stoke voter support ahead of the November election.

With perfect timing, InvestorPlace’s Dana Blankenhorn weighed in. Trump is pouring billions of dollars into the vaccine race, via Operation Warp Speed. He writes that beyond money, these vaccines will need time. But that hasn’t stopped investors from making a whole lot of money.

Vaccine stocks are red-hot in 2020, and that is not likely to change. In fact, regardless of the election outcome, they will continue to be critical to the American reopening plan. However, any more early indications of success — early as in prior to November — could boost the chances of Trump’s reelection, beyond creating rallies similar to what we saw this morning.

As the vaccine race heats up, Blankenhorn sees these six stocks as your best bets:

Moderna (NASDAQ:MRNA)
Regeneron (NASDAQ:REGN)
Sanofi (NASDAQ:SNY)
Novavax (NASDAQ:NVAX)
Sorrento Therapeutics (NASDAQ:SRNE)
Inovio (NASDAQ:INO)

How Will the Secretive Palantir IPO Fare Ahead of the Election?

[Monday, August 24, 3:30 pm]
Contributed by Sarah Smith

Tech unicorn Palantir generates a certain kind of buzz. It is secretive. Reports of its revenue have columnists raising their eyebrows. And despite lots of talk about its upcoming public debut, hardly anyone has seen its S-1 filing with the U.S. Securities and Exchange Commission.

Palantir, led by CEO Alex Karp, says that it builds software for data-driven decision making. Others, like Nick Statt from The Verge, highlight that it is most known for its work in surveillance and policing. It once provided predictive policing software to a police department in New Orleans, and has provided other profiling tools to U.S. Customs and Immigration Enforcement (ICE).

Now, the company is planning a direct listing, allowing it to bypass the IPO underwriting process and avoid diluting existing shares. Tech companies like Spotify (NYSE:SPOT) and Slack (NYSE:WORK) similarly opted for this alternative.

Today Emerging Tech Brew’s Ryan Duffy shed a bit more light on this listing. Once public, there will be three classes of Palantir stock. Founders will retain roughly 50% voting control — in perpetuity. And with its controversial clientele, Duffy wonders exactly how Wall Street will treat the company.

That is a fair question, and it is especially relevant as the Republican National Convention launches. Over the last few months, calls to abolish ICE have gotten louder and gained more mainstream support. But President Donald Trump — who Palantir co-founder Peter Thiel has long backed — is pushing ahead with his plans to “end illegal immigration.”

Once public, will Wall Street flirt with a company at the heart of a deep partisan split? Will its unicorn status and data focus give it an edge? Only time will tell. As the financial press heats up on Palantir, pay close attention.

4 Stocks to Buy to ‘Eradicate’ the Coronavirus

[Monday, August 24, 2:46 pm]
Contributed by Sarah Smith

President Donald Trump faces a critical challenge during the Republican National Convention.

Democrats — and even many Republicans — are calling his response to the novel coronavirus damaging, with obituaries around the nation blaming the president for Covid-19 deaths. Somehow, Trump must answer to these criticisms while still invoking a sense of confidence in his leadership. How he does this is particularly important. Why? His supporters are billing the four-day event as positive and uplifting, countering what they see as “divisive” messaging from Democrats.

Although the RNC does not launch until later this evening, Trump’s recently released second-term campaign priorities give us a sneak peek into what we can likely expect. Leaning into U.S.-China tensions, he says he plans to “hold China fully accountable” for the pandemic. But perhaps more interesting to investors is a proposal to refill stockpiles and prepare the U.S. for future pandemics.

These plans to prep for the future could serve to rebound from claims the U.S. was underprepared for the coronavirus. The earliest weeks of the pandemic saw shortages of face masks and other personal protective equipment (PPE), and some hospitals are still scrambling.

While those headlines garnered attention, a handful of investors made a lot of money. PPE suppliers, and companies that became PPE suppliers, shot up in the first weeks of March and April. Since then, with the supply chain more under control, some investors have feared that the opportunities in those names are done. But with Trump ready to stockpile, these companies could see a second wave of demand.

So what companies are most likely to benefit? Two PPE-specific companies, Alpha Pro Tech (NYSEMKT:APT) and Lakeland Industries (NASDAQ:LAKE), were some of the highest-flying stocks. These two companies could once again capitalize on stockpiling and general pandemic prep.

But other manufacturers quickly pivoted their focus to address the pandemic. As Supply Chain Dive highlights, many companies either began producing new items or reallocating resources. 3M (NYSE:MMM) has since doubled its global output of N95 masks and respirators, and it is still switching up its factories to produce more respirators.

Lastly, with true PPE reserved for healthcare and other frontline workers, everyday Americans turned to good old Clorox (NYSE:CLX). Disinfecting wipes and sprays flew off the shelves, and stores are still struggling to keep products in stock. If Trump sets the tone that it is time for the U.S. to prep for the future and stockpile goods, then many households could do the same. In that scenario, expect the demand to once again be sky-high for Clorox wipes.

Why General Motors Stock Looks Hot Ahead of the Election

[Monday, August 24, 1:33 pm]
Contributed by Sarah Smith

If you have been following InvestorPlace, you know that electric vehicles are all the rage right now. Seemingly every day we learn of a new company that is planning to go public, and shares of Tesla (NASDAQ:TSLA) keep racing for the stars. But ahead of the upcoming U.S. presidential election, there is one EV play that particularly stands out.

General Motors (NYSE:GM) is not a mainstream electric car pick. In fact, analysts often tout how TSLA has so far surpassed GM that it is comical. But General Motors stands to benefit from the campaign priorities of both President Donald Trump and former Vice President Joe Biden.

How? General Motors is leaning into the future with its plans for all-electric vehicles. We recently reported on the unveiling of the Lyriq, its electric Cadillac model. Biden has outlined plans to “Buy America” — to support American manufacturers and help them get creative about their resources. This would help old-school GM, a stalwart American company that is struggling as high-tech automakers and city-living millennials detract from the traditional auto industry.

But Biden also calls to funnel money into American innovation, specifically calling out the research of electric vehicle technology. General Motors has several all-electric vehicles slated for future launches, including its Cadillac and an all-electric Hummer.

Not convinced? A Biden campaign video shows him cruising around in a Corvette, and he accidentally hinted at an upcoming rollout of an electric Corvette that could go 200 miles per hour. Clearly Biden is a big fan.

The case for Trump and General Motors is a bit trickier, but it is still there. His “Made in America” plans call for creating new jobs through getting American-headquartered companies out of China, and back to the U.S. But Trump and GM are on rocky footing. Earlier in the pandemic, the president had some not-so-nice words for CEO Mary Barra. Since then, General Motors has insisted its Chinese joint venture does not fall under the “Made in America” plan, and therefore should not be of concern to Trump. However, General Motors is still a quintessential American manufacturer that Trump’s electoral base likely supports.

Regardless of how November turns out, this is a stock you want on your radar.

5 Marijuana Stocks to Buy for a ‘Blue Wave’

[Monday, August 24, 12:27 pm]
Contributed by Sarah Smith

Ahead of the Republican National Convention, President Donald Trump expressed a key election concern. Would marijuana-related ballot initiatives get more Democrats — especially younger voters — to the polls in November? According to one report, ballot measures that would decriminalize or legalize marijuana could “supercharge” voter turnout.

At a time when pro-weed sentiment is growing in the United States, Trump remains decidedly opposed to legalization or decriminalization. In fact, as many left-leaning Americans are calling to massively reform the criminal justice system, Trump is cracking down on his stance. His recently revealed campaign priorities for his second term that include fully funding police departments and removing cashless bail — a system that typically removes bail payments for misdemeanors and many nonviolent felonies.

But Americans are increasingly in favor of legalizing marijuana use. As of November 2019, two-thirds of adults in the U.S. supported legalization. And Democratic lawmakers are more likely to agree with this majority.

So what does this mean for investors? Marijuana stocks are relatively out of favor now, after supply-demand imbalances and the novel coronavirus wreaked havoc on the industry. But attention is beginning to return to the space ahead of the November election. Later this week, a new cannabis-focused special acquisition purpose company (SPAC) will go public with the intent to raise $125 million.

Therefore, if you believe that widespread legalization would be a big catalyst for the cannabis industry, and for your portfolio, a so-called “Blue Wave” may be in your best interests. InvestorPlace Markets Analyst Luke Lango wrote last week that a Blue Wave — where Democrats gain control of the White House, House of Representatives and the Senate — could bring “sweeping” cannabis reform.

If you have high hopes for the November election, take a close look at these five marijuana stocks:

Canopy Growth (NYSE:CGC)
Aurora Cannabis (NYSE:ACB)
Cronos (NASDAQ:CRON)
OrganiGram (NASDAQ:OGI)
Aphria (NASDAQ:APHA)

5 Stocks to Buy for a ‘Made in America’ Push

[Monday, August 24, 11:35 am]
Contributed by Sarah Smith

Made in America. Three words, two presidential candidates, lots of investing opportunities.

Just ahead of the Republican National Convention, President Donald Trump released his second-term campaign priorities. While his plans unsurprisingly include many action items on immigration, the police and U.S.-China relations, they also go back to an anchoring part of his 2016 election. Jobs. Perhaps more relevant now amid the novel coronavirus, Trump is promising to create 10 million jobs in 10 months. Plans for a “Made in America” tax credit facilitate this, encouraging a restoration of American manufacturing.

Former Vice President Joe Biden takes a different approach while using similar rhetoric. Focusing on plans to “Buy American” and “Invest in All of America,” he criticizes the “trickle-down” nature of the Trump proposal while reinforcing it is time to focus on the American economy through domestic manufacturing and innovation. His proposal includes funneling $300 billion into researching innovative technologies and creating incentives for American manufacturers.

While each plan lends itself to a specific group of investment opportunities, there is a way to generally play this catalyst. Look for stalwart American companies — likely struggling manufacturers that have a big spot in U.S. history. Then, look for those companies that are continuing innovate despite their challenges. Think of legacy automakers pushing into the electric vehicle space and manufacturers that pivoted to produce personal protective equipment (PPE).

InvestorPlace’s Tezcan Gecgil took an early stab at this, finding two exchange-traded funds and three stocks to buy that represent uniquely American opportunities. This catalyst will surely continue to evolve, but for now, her picks look solid: