Joe Biden became the 46th President of the United States. Unlike former President Donald Trump, who shed light on climate change and environmental issues, Joe Biden has a strict stance on clean energy. He launched a clean energy initiative proposing a $ 2 trillion federal climate program. This plan has significantly increased the inventory of clean energy.
Impact of President Biden on TSX shares
During the campaign, Biden talked about some of his plans to achieve net zero emissions by 2050. Among the many elements of the plan were the installation of wind farms and public charging outlets. Biden’s victory caused three Canadian shares to skyrocket. Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP), Northland power (TSX: NPI),and Magna International (TSX: MG)(NYSE: MGA)..
All three companies are aiming to reduce carbon emissions and will benefit from Biden’s clean energy program. Policy and government investment will increase the adoption of renewable energy and electric vehicles.
Ballard Power Systems
Ballard Power Systems’ share price has skyrocketed 123% since Biden won the election in November 2020. The company manufactures fuel cells that enable the electrification of large vehicles such as buses, trucks, trains, passenger cars and forklifts.
In addition to vehicles, Ballard uses fuel cells to provide backup solutions for communications networks and other critical communications infrastructure. We also announced FCwave, the first fuel cell module designed for ships.
Ballard Power has won several contracts in Europe and China and is stepping up its commitment to zero emission goals by 2035. Biden aims to reduce the US carbon footprint by 50% by 2035. One of the elements of his plan is to create incentives. For electrification. Ballard Power is in a good position to take advantage of this opportunity.
However, the concern is that negative cash flow. The company’s losses have only increased over the past three years. However, new investments in hydrogen and the pipeline of projects offer good opportunities. Revenue growth has accelerated from 10% last year to 18% in the nine months of 2020. This stock is already trading at 57 times the sales per share. But as the company secures more contracts and expands beyond the vehicle, it has the potential to grow further.
Another company that will benefit from Biden’s electrification strategy is auto parts manufacturers Magna International.. The company is increasing its exposure to electric vehicles (EVs), where sales are growing by double digits when vehicle sales are declining. In 2019, global EV sales increased by 40%, but global car sales 5.1% down..
Magna provides automakers with an end-to-end platform from development and supply chain to production.Now Focus on EV Established a joint venture with Electric Powertrain LG Electronics.. We also work with many automakers and technology companies to manufacture EVs and self-driving cars.
Magna has diverse exposures to EVs without investing billions of dollars in research. This reduces the risk of product failure and increases the potential for a successful product.
Biden has pledged to deploy over 500,000 new public charging outlets by the end of 2030. Support infrastructure will accelerate the spread of EVs in the United States. Magna’s inventory has skyrocketed by more than 40% since Biden’s victory and has the potential for further growth in 2030.
Another agenda item for Biden’s clean energy program is the installation of several offshore wind farms over the next four years. This benefits Northland Power, which is heavily exposed to offshore wind. A project of about 1.5GW is under construction. Biden’s victory accelerates the completion of the project and makes available capital to build new wind farms.
When these projects go online, Northland Power will generate more cash flow through long-term electricity purchase contracts. Since Biden’s victory, the company’s share price has skyrocketed 20%, trading at 26 times EPS. It has the potential to grow significantly in 2030.
President Biden’s bull
The three stocks are at the pinnacle of the clean energy revolution. The last 10 years are different from the last 20 years. In the last decade, we have the technology and infrastructure to achieve zero emissions by 2035.
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Stupid contributor Puja Tayal There are no positions in any of the listed stocks. Motley Fool recommends Magna Int’l.
Three stocks growing under President Joe Biden
https://www.fool.ca/2021/01/22/3-stocks-that-will-grow-under-joe-bidens-presidency/ Three stocks growing under President Joe Biden