If You’d Invested In These 5 Stocks Before the Last Inauguration Day, Here’s How Much They’d Be Worth Now
Written by
John Csiszar
Edited by
Amber Barkley
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Studies have shown that, overall, the stock market isn’t significantly affected in the long run by who is in the White House. The market as a whole is surprisingly resilient, bouncing back from numerous dark times to continually make new highs.
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However, there’s no denying that over the short-term — such as over a single, four-year presidential cycle — individual stocks, rather than the entire market, can be directly influenced by various policy measures and/or the economic environment surrounding them.
Here’s a look at how five specific stocks have performed under the Biden administration, along with an addendum highlighting how one industry in particular shone brightly. Also, learn how cost of living has changed in every state since President Joe Biden took office.
Pfizer (PFE)
- Closing price on Jan. 20, 2020: $38.27
- Closing price on Nov. 12, 2024: $26.19
- Percent change: -31.6%
It might be hard to remember looking back, but Biden took office right in the heart of the COVID-19 pandemic. Given his decidedly different view of how to treat the virus vs. outgoing President Donald Trump, many experts anticipated that vaccine producer Pfizer would do well during Biden’s presidential term.
That prediction proved correct for a period of time, as Pfizer’s stock boomed. Unfortunately, as the pandemic eased, the Pfizer stock began to suffer.
BioNTech (BNTX)
- Closing price on Jan. 20, 2020: $36.54
- Closing price on Nov. 12, 2024: $106.32
- Percent change: 191%
BioNTech was anticipated to enjoy the same Biden boost as headline vaccine producer Pfizer, thanks to the state of the pandemic and the new president’s emphasis on biotechnology research. The biotech company actually shared billing with Pfizer on one of the COVID-19 vaccines, although most people simply referred to the popular vaccine as the “Pfizer vaccine.”
Unlike Pfizer, however, BioNTech stock managed to continue to soar even after the end of the pandemic.
First Solar (FSLR)
- Closing price on Jan. 20, 2020: $51.55
- Closing price on Nov. 12, 2024: $182.26
- Percent change: 253.6%
First Solar is a volatile stock that trades as much on legislative developments and future speculation as it does on current revenue and earnings. So when Biden moved into the Oval Office, many pundits backed First Solar stock as one of the primary beneficiaries of the new president’s green agenda.
Unlike many other stocks that are more directly tied to the current economy, solar stocks like First Solar are still at a point where they can be influenced even more by legislative and government action.
Caterpillar (CAT)
- Closing price on Jan. 20, 2020: $145.85
- Closing price on Nov. 12, 2024: $393.01
- Percent change: 169.5%
The investment case for Caterpillar was grounded in Biden’s desire to pass a sweeping infrastructure development bill, something that would directly benefit a construction equipment manufacturing company like Caterpillar. The bill ultimately took the form of the Infrastructure Investment and Jobs Act in 2021, providing a tail wind for Caterpillar.
Vulcan Materials (VMC)
- Closing price on Jan. 20, 2020: $141.78
- Closing price on Nov. 12, 2024: $288.38
- Percent change: 103.4%
Like Caterpillar, Vulcan Materials had a lot to gain from the incoming Biden administration and its focus on infrastructure development. As the nation’s largest producer of construction aggregates and materials, the 2021 infrastructure legislation helped work its magic on Vulcan Materials and its stock price.
What Stocks Performed Best?
The so-called “Magnificent 7” tech stocks — Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla — have been serious outperformers during the Biden administration. But this wasn’t necessarily the call before Biden took office. In fact, some market pundits worried that government legislation and litigation would restrict the growth of tech stocks during the Biden administration.
However, the Magnificent 7 have been nothing short of Wall Street darlings, returning over 200% as of November 2024, or more than 25% compounded annually.
The point is that it’s hard for anyone, even market experts, to predict how specific stocks will react under a new president. Not only can presidents change their minds and agendas, they may be restricted in what they can do — or even pushed in new directions — by Congress.
That being said, it is worth noting that many of the stocks listed above that were predicted by experts to do well under the Biden administration did indeed outperform.
Editor’s note: Stock prices were sourced from Yahoo Finance and are accurate as of Nov. 12, 2024.
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