Wall Street flags clean energy, airlines and REITs as potential U.S. midterm winners

Traders Union
All News
Stocks
Clean energy & airlines midterm winners

Highlights

Democratic control of Congress is expected to boost drone makers like Amprius Technologies, with 50% of its 2026 revenue tied to Ukraine support and potential for expansion in 2027.
William Blair upgraded First Solar amid anticipated policy tailwinds for renewables, with permitting reform and solar procurement support likely after Democratic wins.
Hospitals like HCA Healthcare and Universal Health Services saw share gains this week, as Democrats aim to repeal Medicaid cuts and restore Affordable Care Act premium tax credits by 2026.

Analysts outline sectors seen benefiting from policy and demand shifts

As reported by CNBC, Wall Street analysts are pointing to several stock groups that could outperform after Democrats won control of Congress by flipping seven Senate seats and more than 40 House seats this week. The change is seen increasing the party's influence over legislative priorities, with implications for defense support, energy permitting, healthcare coverage and consumer activity.

William Blair says drone makers and battery suppliers could gain if Democrats increase support for Ukraine in its war against Russia. The firm highlighted Amprius Technologies, saying about 50% of its 2026 revenue is directly tied to Ukraine or allied support efforts, and analyst Mark Shooter says a reversal toward higher U.S. funding could support demand and expand revenue in 2027.

Renewable energy companies are also on analysts' buy lists. Wolfe Research says permitting reform and renewable mandates proposed by incoming governors could create policy tailwinds, while William Blair upgraded First Solar to outperform from market perform, saying Democratic wins could support more utility-scale solar procurement, project siting and grid development.

Healthcare, airlines and specialty REITs draw investor attention

Healthcare stocks are also viewed as potential beneficiaries because Democrats are expected to push to repeal Medicaid cuts and restore expanded Affordable Care Act premium tax credits that expired at the end of 2025. Wolfe Research says hospitals may see some of the clearest benefits over time, and shares of HCA Healthcare and Universal Health Services have already risen this week.

Citigroup says airline stocks could benefit if stronger sentiment among Democratic consumers lifts discretionary spending on travel. The U.S. Global Jets ETF has risen about 2% since Election Day, while Delta Air Lines and United Airlines lead gains among major carriers this past week.

Barclays, meanwhile, says some specialty REITs may gain pricing power if opposition to data center development slows industry-wide construction. The bank named Equinix, Iron Mountain and Digital Realty Trust as likely beneficiaries, arguing that existing approval pipelines and limited permitting exposure could leave them better positioned despite recent share declines linked to higher interest rates.

Rising costs and delays in U.S. AI data center development have made it harder for operators to turn ambitious expansion plans into completed capacity. In our earlier article, we noted that higher interest rates, cost overruns, and power-grid limits—along with growing local opposition—are undermining project timelines and investor confidence across the sector.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.