In this article, we discuss the 5 best stocks that will benefit from Biden’s $6 trillion plan. If you want to read our detailed analysis of these companies, go directly to the 10 Best Stocks That Will Benefit from Biden’s $6 Trillion Plan.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the stocks that will benefit from Biden’s huge spending plan.
5. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
NVIDIA Corporation (NASDAQ: NVDA) is a California-based technology company that makes and sells visual computing hardware. It was founded in 1993 and is ranked fifth on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have offered investors returns exceeding 97% in the past twelve months. The $6 trillion plan has put an emphasis on supporting American manufacturers, and NVIDIA, as one of the leading computer hardware brands in the world, looks set to benefit from this.
On June 1, NVIDIA Corporation (NASDAQ: NVDA) announced the launch of two new gaming graphics processing systems, named the GeForce RTX 3080 Ti and GeForce 3070 Ti, which are significantly faster than the older models.
At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
4. Verizon Communications Inc. (NYSE: VZ)
Number of Hedge Fund Holders: 69
Verizon Communications Inc. (NYSE: VZ) is a New York-based telecommunications company. It was founded in 1983 and is ranked fourth on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s stock has returned close to 1.5% to investors over the past week. The $6 trillion plan has set aside more than $100 billion for the improvement of communications infrastructure, and Verizon, with over 100 million customers, stands to gain as the plan is approved and implemented across the US.
Verizon Communications Inc. (NYSE: VZ) is a dependable option for income investors who want a steady stream of revenue, as the firm pays a regular dividend. On June 2, the company declared a quarterly dividend of $0.6275 per share, in line with previous. The forward yield was 4.45%.
At the end of the first quarter of 2021, 69 hedge funds in the database of Insider Monkey held stakes worth $11.3 billion in Verizon Communications Inc. (NYSE: VZ), up from 67 in the previous quarter worth $10.5 billion.
In its Q4 2020 investor letter, Mott Capital Management, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE: VZ) was one of them. Here is what the fund said:
“Verizon finished the year lower by around 4.3% and has been a hard holding over the past 6 years. It has gone nowhere and has been the one stock I struggle with. However, 5G has finally arrived. If 5G can deliver on the promise I think it can, then Verizon should eventually come around. I remain hopeful.”
3. General Electric Company (NYSE: GE)
Number of Hedge Fund Holders: 68
General Electric Company (NYSE: GE) is a Boston-based company that makes and sells consumer electronics, energy solutions, and health products. It was founded in 1892 and is ranked third on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have returned more than 77% to investors in the past year. With the Biden admin pushing clean energy, the firm has stepped up investments in renewable energy, including wind, hydro, and solar solutions.
On June 3, investment advisory UBS reiterated a Buy rating on General Electric Company (NYSE: GE) stock with a price target of $17 on the back of the assessment of strong fundamental business drivers for the Boston company in the long run.
At the end of the first quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $6.1 billion in General Electric Company (NYSE: GE), down from 69 in the previous quarter worth $5.6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE: GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
2. American Tower (NYSE: AMT)
Number of Hedge Fund Holders: 58
American Tower (NYSE: AMT) is a Boston-based real estate investment trust that primarily operates communications infrastructure. It was founded in 1995 and is ranked second on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have offered investors returns of 32% over the past three months. The new $6 trillion proposal by President Biden has pledged tens of billions of dollars to upgrade existing communications networks in the US, with American Tower set to be a top beneficiary of the plan.
American Tower (NYSE: AMT) is one of the best dividend options on the market as well, as the company rolls out a regular quarterly payment to shareholders. On May 27, the firm declared a quarterly dividend of $1.27 per share, up 2.4% from the previous dividend. The forward yield was 2%.
At the end of the first quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in American Tower (NYSE: AMT), down from 61 in the previous quarter worth $4.7 billion.
In its Q4 2020 investor letter, Richie Capital Group LLC, an asset management firm, highlighted a few stocks and American Tower (NYSE: AMT) was one of them. Here is what the fund said:
“American Tower (AMT – Down 9.15%) – The largest operator of wireless towers has faced challenges in the form of customer churn at one of their largest customers: Sprint/T-Mobile. However, the company remains well positioned as carriers domestically and internationally transition to 5G which will require a densification of their networks.”
1. Lockheed Martin Corporation (NYSE: LMT)
Number of Hedge Fund Holders: 50
Lockheed Martin Corporation (NYSE: LMT) is a Maryland-based firm that makes and sells weapons, aviation products, and other technologies. It was founded in 1995 and is placed first on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have returned more than 15% to investors in the past few months. President Biden has set aside more than $753 billion in defense spending as part of the $6 trillion plan and Lockheed Martin could be one of the top beneficiaries of this spending.
On June 4, Lockheed Martin Corporation (NYSE: LMT) announced that it had inked a deal worth over $1 billion with the US government for Space Based Infrared Surveillance contractor logistics support.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation (NYSE: LMT) with 1.5 million shares worth more than $590 million.
In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE: LMT) was one of them. Here is what the fund said:
“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.
