The day of the US Presidential election has finally arrived. After months of campaigning, it’s clear that the Harris-Trump contest could have substantial consequences, including for financial markets and the performance of UK stocks.
The result of the run-off remains balanced on a razor’s edge. But here are two FTSE 100 and FTSE 250 stocks I believe could rise in value if Kamala Harris wins the keys to the White House.
Ashtead Group
The election result could have very different consequences for the US construction industry. I think a Harris victory could be supportive of the sector, and by extension for rental equipment suppliers like Ashtead Group (LSE:AHT).
As Vice President, she helped oversee the $1.2trn Infrastructure Investment and Jobs Act back in 2021. It’s one of the biggest spending packages in US history to boost the country’s transport, telecoms, water, and energy architecture.
On the election stump, Harris has vowed further measures to boost infrastructure-related and broader construction activity. This includes fast-tracking the permit process and boosting supply of affordable housing.
Ashtead could receive a big boost from such measures. It’s Sunbelt Rentals brand spans the US, UK, and Canada, but sources the lion’s share (86%) of revenues from the States. It operates over 1,200 stores in all 50 states.
Irrespective of the election result, I think the FTSE firm has a bright future. It’s second only to United Rentals in terms of market share. And it’s still rapidly expanding to keep sales and profits on the sharp upward slant of the past decade.
On the downside, acquisition-based growth strategies like Ashtead’s come with added risk. Costs can balloon and revenues disappoint. But on balance, I believe things are looking good here.
US Solar Fund
As Joe Biden’s second-in-command, Harris also assisted in the rollout of the Inflation Reduction Act two years ago. This was also the largest clean energy investment in US history, providing $400bn in funding to companies through tax breaks, grants, and loan guarantees.
While espousing the importance of the country’s oil industry, the VP’s made it clear that renewable energy investment would be a key plank of her own adminstration. This would be good for multiple UK stocks, including the US Solar Fund (LSE:USF).
This FTSE 250 business owns 41 solar farms spanning California, North Carolina, Oregon, and Utah, and sells the electricity its hardware creates onto energy suppliers via long-term contracts.
A Harris election victory could give the renewables sector a large boost. But I’d expect it to continue growing strongly even if Trump wins. The former President oversaw a huge boost to commissioned capacity between 2016 and 2020.
There are dangers to investing in renewable energy stocks like US Solar Fund. Power production is highly vulnerable to weather conditions. Keeping solar panels up and running is also hugely expensive business.
However, the sector still has significant investment potential in my opinion.
