10 Best Stocks to Buy After Democrats’ Midterm Election Victory

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Investors are grappling with a fresh crash in AI stocks. The selloff has come as a surprise, as many were expecting markets to continue rising following the Democrats’ victory in the midterm elections. Instead, some of the biggest technology and AI stocks are falling sharply, raising fresh concerns that the AI bubble may finally be bursting.

What History Says

Stocks have been higher one year after every midterm vote since 1946, including all four times both chambers flipped to the party opposing the president, Truist Advisory Services strategist Keith Lerner said, according to a Bloomberg report. UBS Global Wealth Management chief investment officer Mark Haefele expects more volatility in the near term, especially in tech, but he does not think the result changes the medium-term outlook enough to justify a shift in portfolios, he wrote in a note.

Healthcare Looks Like the Biggest Winner

Democrats now have more room to restore the enhanced Affordable Care Act subsidies and roll back parts of the Republican Medicaid cuts, including work requirements. Investors in Medicaid-focused health insurers are likely to welcome the sweep, Morgan Stanley said. We recently ranked the healthcare stocks with the most upside according to analysts, and the list mentions the post-midterm rally. Click to see the 10 picks.

Analysts Disagree on AI and Tech

Wedbush’s Dan Ives said Democratic control of the Senate will create major hurdles for AI and tech legislation over the next two years. JPMorgan traders said fears about Texas data centers were overblown because a change in control would most likely mean new regulation while the building continues. They added that they are not yet ready to call it an all-clear for the AI trade. Goldman Sachs strategists said a Democratic Congress might limit data center tax incentives, and a national moratorium looks unlikely under any election outcome. Our list of the 10 best stocks to buy for the next 10 years is ranked by hedge fund ownership and includes AI leaders like Nvidia, Broadcom and Microsoft. Read the full ranking here.

Defense and Clean Energy

Democratic control could limit growth in defense spending after inflation without a broader deal that also covers healthcare, Wells Fargo Investment Institute said. The firm still calls the industry’s earnings outlook stable to modestly positive. Clean energy shares recently jumped. Hedge funds own several clean energy names heavily, and we ranked them by the number of holders. Check which stocks lead the list.

Below, we look at the top stocks to buy after the Democratic victory.

Methodology

To make this list, we scanned financial publications and brokerage analyst notes published before and after the 2026 midterm elections. We picked 10 stocks that analysts believe are poised to benefit from Democrats’ victory in Congress. We ranked the stocks by market cap, from the smallest at number 10 to the largest at number 1. We also mentioned each company’s market cap as of November 4, and the analyst views and news reports behind each pick.

See the top 5 stocks in the list on our YouTube channel by clicking the image below:

Best Stocks to Buy After Democrats’ Midterm Election Victory

10. Sunrun Inc. (NASDAQ: RUN)

Market Capitalization as of November 4: $2.12 Billion

Barclays analysts said Democrats’ victory in the midterm elections could reduce political risks surrounding renewable-energy incentives and provide greater protection for investments in US solar, wind and battery-storage projects, according to a media report. Although the Barclays assessment addressed the broader industry rather than recommending Sunrun individually, the residential solar company was specifically identified by Reuters on November 2 as a potential beneficiary of a strong Democratic showing.

Sunrun provides residential solar and battery-storage solutions and could benefit if Democratic lawmakers preserve incentives that support rooftop solar adoption. Following the election, Sunrun shares advanced alongside other clean-energy companies as investors anticipated a more supportive policy environment. However, the company’s recovery would also depend on financing conditions, customer demand and the fate of residential solar tax incentives.

9. Acadia Healthcare Company, Inc. (NASDAQ: ACHC)

Market Capitalization as of November 4: $3.00 Billion

Jefferies identified Acadia Healthcare among hospital-related stocks with potential near-term upside tied to the midterm elections, according to a Bloomberg report. The investment thesis centered on the possibility that Democrats could negotiate changes to Medicaid spending reductions included in President Donald Trump’s tax and spending legislation.

Wolfe Research’s head of US policy and politics, Tobin Marcus, also said hospitals could benefit if Democrats secure concessions on healthcare funding during future debt-ceiling negotiations. Acadia, which operates behavioral healthcare facilities, could benefit from a more favorable Medicaid funding environment. Following the Democratic victory, Bernstein analysts said delays to Medicaid-related provisions could ease expected enrollment losses for hospitals and potentially prevent reductions to certain state-directed payments, according to Reuters.

However, the potential benefit for Acadia remains dependent on future policy negotiations and the company’s exposure to Medicaid reimbursement. Greenlight Capital named Acadia one of its biggest winners in the first quarter of 2026 and called it the leading pure-play behavioral healthcare clinic operator in the US. Read the full letter here

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