AUS
NZ
UK
CA
USA
IND
Source:archna nautiyal, Shuttterstock
Incoming President Joe Biden’s statements on the US economy and how he would address some of the challenges have evoked great interest among businesses and investors from across the world. If the mildly bullish stocks this week are any indication, his presidency has created optimism in some quarters, especially health, tech, auto, and renewables that may see a further momentum in the coming weeks.
Biden’s promised big push for a 100% green economy by 2050 has already triggered a buying frenzy for some stocks, but the trend is not limited to green tech companies alone. Other stocks aligned to his stated objectives, such as affordable healthcare and education, EVs, net-zero emission, Covid research, and vaccination drive have also seen impressive gains in the run-up to his presidency.
Here are 5 stocks that have registered handsome gains and may benefit further from a policy rejig.
Apple (APPL)
Apple Inc. has seen remarkable growth over the past year. A slew of project announcements, deals, and board appointment, and an appetite for new challenges and innovation have made it one of the most attractive companies among investors. Even during the 2020 pandemic year, it was able to make profits and pay dividends four times to its shareholders.
Apple’s cumulative volume of shares traded on Jan 20, 2021, stood at 36,013,522, with a price tag of around USD 132 per share. It has performed consistently well over the years. In 2020, it posted a record fourth-quarter revenue of USD 64.7 billion, of which, 59 percent came from international sales. The quarterly EPS was USD 0.73, and the P/E ratio was 38.97. It has forecast an EPS growth of USD 4.03 in 2021.
On Jan 5, 2021, Apple elected Monica Lozano, CEO of College Futures Foundation, as one of its directors. Her presence would help execute its plans for a state-of-the-art innovation Centre for African American students and projects to fund black and brown entrepreneurs. Besides, it has partnered with Physitrack, a leading UK-based health-tech firm to provide mobility services.
Tesla (TSLA)
Tesla’s futuristic vision for the auto industry has caught the imagination of many investors. The company has seen incredible growth in 2020. Between Jan 21, 2020, and Jan 20, 2021, its share price rose by more than 1000 percent. On Jan 20, 2021, the value per share was USD 850.45. with a market cap of more than USD 806 billion, Tesla has rapidly expanded to new markets, including Asia. At the end of the fourth quarter in Sep 2020, earning per share was 0.27. by the end of 2021, it hopes for an EPS growth of 2.96. The company’s P/E Ratio was 1707.7, while the total volume of shares was 25,665,883. Tesla’s fourth-quarter and full-year results will be announced on Jan 27, 2021.
Tesla had launched its Model S in 2012, and in 2020, it had unveiled the Model Y, a mid-sized SUV equipped with advanced features that enhance safety. The US National Highway Traffic Safety Administration (NHTSA) had given a 5-star rating for the vehicle.
Pfizer (PFE)
Pfizer, one of the world’s top pharmaceutical companies, has seen spectacular growth in recent times. On Jan 20, 2021, its stocks were trading at USD 36.5 per share. Also, some 35,400,000 scrips were traded during the session. The recent approval of its Xalkori (crizotinib) drug, used for the treatment of pediatric patients, by the US Food and Drug Administration (FDA) has sent its stocks soaring. The company has also made an important investment in a bioscience firm involved in drug research for various illnesses. Pfizer has invested USD 25 million in Vedanta Biosciences, which will conduct a Phase 2 study of VE202 in inflammatory bowel disease (IBD). It will start the research in 2021. Such forward-looking initiatives have made the company one of the attractive investment destinations. As of Dec 31, 2019, Pfizer’s net profit was USD 16,273,000. At the end of the fiscal quarter in September 2020, the earnings per share stood at 0.72. It has forecast an EPS growth of 3.31 in the new year. Its P/E ratio for 2020 is estimated at 12.59.
FuelCell Energy, Inc. (FCEL)
This fuel-cell power company is a global leader in delivering clean, efficient, and affordable energy solutions to its customers. The company has witnessed quick stock movements in the run-up to Biden’s presidency and is expected to continue that momentum in the weeks ahead. It has a market cap of over USD 5 billion. On Jan 20, 2021, its stocks were priced at around USD 16-18 per share, with a total volume of 49,186,200 shares traded. With the increased government focus on green technologies, this stock may see an upward trajectory in the months ahead. As of October 31, 2019, its net income stood at -USD 77,568. In the fiscal quarter ending in July 2020, its EPS value was -0.07. In 2019, its P/E value (Actual) was -12.89. In 2020, it is estimated to be -67.04.
General Motors (GM)
The stocks of General Motors have recently witnessed massive rallies in the US markets. Its stocks were traded at around USD 54 per share on Jan 20, 2021, with a total volume of 47,428,520 shares. The company has paid one single dividend of USD 0.38 to its shareholders in 2020. In 2019, it had paid for such payments. As of December 31, 2019, its net income stood at USD 6,732,000. The company’s P/E ratio is 25.05. EPS was 2.83 at the end of the fiscal quarter in September 2020. General Motors has upgraded its technology to tap the electric vehicle segment in the market. It had recently launched several EV models, such as the GMC Hummer EV, and Cadillac LYRIQ, as well as acquired new EV battery technology. These changes in line with the needs of the present times, make GM an attractive investment destination.
