Vice President Kamala Harris has a slim lead to become the next president, according to Decision Desk HQ’s model. However, it could become more difficult for the Democratic Party to gain control of Congress. Decision Desk HQ estimates that the Republican Party has a 54% chance of retaining its majority in the House of Representatives and a 71% chance of regaining a majority in the Senate.

Still, it is possible that momentum could swing toward the Democrats in the final weeks of the campaign. How can investors benefit from such a scenario? Here are three simple stocks to buy as Harris and the Democrats battle it out in November.

1. Dr. Horton

DR. Horton (NYSE: DHI) would likely be one of the biggest winners if Harris wins and Democrats control Congress in the upcoming elections. The company has been the largest U.S. homebuilder by volume since 2002. It operates in 121 markets in 33 states.

Harris has proposed a plan that she says will spur the construction of 3 million new homes over the next four years. She wants to donate $25,000 to first-time homebuyers to help them with down payments. The Democratic presidential candidate also wants to offer a tax incentive to homebuilders who sell homes to first-time homebuyers. Both proposals would almost certainly reduce DR’s revenues. Give Horton a boost.

Another major reason why many DR Horton shareholders might welcome a Democratic victory is inflation. This is evident from a survey among almost forty top American economists Financial times and the University of Chicago found that 70% believed Harris’ policies would lead to lower inflation than those proposed by former President Donald Trump. Lower inflation translates into lower interest rates – a key ingredient for DR Horton’s success.

Regardless of which party is in power after the election, DR Horton should be in great shape in the long run. The US still faces a housing shortage. And there is only one practical solution to the problem: building more houses.

2. Brookfield renewable

Democrats have been outspoken supporters of renewable energy for years. Harris is no exception. She pledges to “invest in building the energy industry of the future.” The vice president also wants to cut red tape so clean energy projects can be completed quickly. Brookfield Renewable (NYSE:BEP) (NYSE: BEPC) could benefit from this policy.

Harris seeks to protect US energy security and prevent the country’s dependence on foreign oil. While domestic production of oil and natural gas will be necessary to achieve this goal, renewable energy will become increasingly important.

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Brookfield Renewable is one of the largest clean energy producers with hydro, wind and solar facilities around the world. The company currently has an operating capacity of approximately 37 gigawatts, twice as much as in 2020. Development capacity is approximately 200 gigawatts.

Two other factors should help Brookfield Renewable even if Democrats don’t win across the board in November. First, renewable energy is already the cheapest energy alternative. Secondly, the demand for electricity is growing rapidly, mainly due to the increasing number of data centers.

3. UnitedHealth Group

Harris has committed to making permanent the tax benefits available to working and middle-class families who purchase health insurance on the Affordable Care Act (ACA) marketplace if he is elected president. She wants to accelerate the speed of Medicare drug price negotiations.

Both proposals would help companies that market health plans and Medicare Part D prescription drug plans. UnitedHealth Group (NYSE:UNH) is the largest health insurer within the group.

UnitedHealth Group offers individual and family health plans on the ACA health insurance marketplaces in 26 states. Last year, the company enrolled 10.2 million people in Medicare Part D plans, including standalone plans and Medicare Advantage plans.

However, there is a bigger tailwind that should matter more to UnitedHealth Group in the long run than which party is in power in Washington, DC: an aging population. The number of Medicare enrollees is expected to skyrocket by 2030 as baby boomers retire. Expect Medicare Advantage to become an even more important part of UnitedHealth’s business in the coming years.

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Keith Speights has positions in Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool holds and recommends positions in Brookfield Renewable and DR Horton. The Motley Fool recommends Brookfield Renewable Partners and UnitedHealth Group. The Motley Fool has a disclosure policy.

3 No-Brainer Stocks to Buy as Kamala Harris and Democrats Sweep in November Originally published by The Motley Fool