"President Obama has stated that he’s been studying Roosevelt’s first 100 days and the way out of the current economic mess will look a lot like the New Deal," says David Fessler.
The advisory panelist for The Oxford Club explains, "I think we will now see President Obama get the ball rolling on his version of the New Deal, focused on energy and infrastructure." Here, he looks at stocks poised to benefit.
"Saving energy will be one of his first initiatives. It’s what will give us the quickest bang for our buck.
"Better insulation in homes, programmable thermostats, fluorescent bulbs, more fuel-efficient cars, energy management systems for use in larger-scale commercial buildings and beefed-up public transportation are just a few of the ways to save energy.
"The government will likely offer attractive tax incentives to rally support. So who stands to prosper from such initiatives?
"Big blue-chip companies, like Owens Corning (NYSE: OC), maker of insulated glass and building insulation; General Electric (NYSE: GE), manufacturer of wind turbines, energy control and infrastructure products; and Johnson Controls Inc. (NYSE: JCI), maker of energy management systems (for buildings and vehicles) and hybrid vehicle batteries.
"Wind-, solar- and geothermal-energy companies stand to benefit, too, like First Solar (NASDAQ: FSLR), manufacturer of thin-film solar panels; Ormat Technologies (NYSE: ORA), a geothermal and recovered-energy power producer; and Vestas Wind Systems (OTC: VWSYF), the world’s largest wind turbine manufacturer.
"Moreover, as new green sources of energy begin to come on-line, the nation’s electrical grids will have to be upgraded to move the power to where it’s needed. This is a huge undertaking.
"And the biggest winner will be ABB, Ltd. (NYSE: ABB), a provider of power and automation technologies. It’s hard to think of a scenario where ABB’s share price doesn’t double in the next two years.
"In a nutshell, President Obama and his administration have a huge opportunity to turn this recession ship around before it runs aground. In the process, he can make a huge step toward weaning us off of oil, too. And put the infrastructure in place to do it."
