Regardless of your personal opinions on the Democratic party, one thing is clear: the stock market will present opportunities and stocks to buy based in part on its decisions. To that end, most recently, House Democrats passed a $3.5 trillion budget resolution on Aug. 24.

This news is important because, by passing the resolution process, the proposed budget can now pass as a bill without the Republicans who oppose it. Of course, the final bill is far from becoming law. However, this step still signifies progress toward President Joe Biden’s domestic priorities, which are broadly targeted at improving the nations’ social safety net. 

So, the reconciliation process allows Democrats to pass a bill sometime this fall by a simple majority. That bill will benefit health care, child care and the environment, among other areas prioritized under the current administration. And this is on top of infrastructure spending.

All in all, the news bodes well for certain industries. From a market perspective, certain stocks should be in prime position as a result of these developments. As such, what follows is a list of several stocks to buy or consider in light of recent headlines.

• SolarEdge Technologies (NASDAQ:SEDG) 
• First Solar (NASDAQ:FSLR) 
• Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI)
• Oscar Health (NYSE:OSCR) 
• Amedisys (NASDAQ:AMED) 
• Caterpillar (NYSE:CAT) 
• ArcelorMittal (NYSE:MT) 

Stocks to Buy: SolarEdge Technologies (SEDG) 

First up on this list of stocks to buy is SolarEdge, a solar company. One of the central priorities of the Biden administration — and the larger Democratic party — is the challenge that climate change poses. 

Biden and fellow Democrats are keen on prioritizing sources of energy with low carbon dioxide emissions. In general, this means that fossil fuels will take a back seat to green energy during the next few years — and likely for the foreseeable future. And of course, that means solar energy names like SEDG stock will have strong tailwinds as well. 

At over $290 per share, SolarEdge stock is not cheap. However, it will be moving up fairly significantly if analyst sentiment proves accurate. According to the Wall Street Journal, 23 analysts with current coverage of SEDG stock have it rated as overweight and believe it deserves an average target price of $325.53. If their predictions prove true, there is more than 11% upside in the shares. 

So, let’s put some numbers to SolarEdge to better understand the company. 

SEDG is primarily focused on solar inverters which transform and transmit solar energy into usable electricity. By the end of the second quarter this year, SolarEdge counted more than 2.15 million monitored systems worldwide, a presence in 29 countries and 3.1 million shipped solar inverters. 

First Solar (FSLR) 

If you take a cursory glance at First Solar based on analyst sentiment alone, you might be underwhelmed. After all, the average target stock price it carries is only about $3 higher than its current price of nearly $95.

But if you look at the bigger picture, a narrative that favors First Solar starts to emerge. Not only does this pick of the stocks to buy have broad political tailwinds, but it also helps the American worker.

That’s because the company is slated to create 700 new jobs as a result of its new $680 million, 3.3 gigawatt Ohio-based manufacturing facility. The facility is part of a broader company investment within the state which will ultimately lead to 6 gigawatts (GW) of production in Ohio alone. Once operational in 2023, it will create the “largest fully vertically integrated solar manufacturing complex outside China.”

Additionally, one unique aspect of First Solar’s business is found in its photovoltaic modules. They rely on the company’s proprietary cadmium telluride semiconductors. The broader sector, on the other hand, relies on crystalline silicon semiconductors dominated by Chinese manufacturers. 

All told, FSLR stock should be attractive to investors who are interested in the confluence of American energy production and green energy. 

Stocks to Buy: Hannon Armstrong Sustainable Infrastructure Capital (HASI)

What kind of returns could investors in Hannon Armstrong Sustainable Infrastructure Capital reasonably expect if they establish a position now? Given that analysts expect HASI stock to rise to $65.80, investors could likely see about 9% to 10% growth from current levels. 

That alone is very respectable. However, if we factor in the company’s annualized $1.40 dividend, that expected return rises to around 12%. So, even if we ignore broader political tailwinds, this pick of the stocks to buy appears to be in a strong position. 

But that’s not all — we should also recap the company’s strong results, which I wrote about a few weeks back. For the quarter, HASI “recorded an 85% increase in net income […] which rose from $36.469 million to $67.624 million.”

This is a company that distributes capital across companies in sustainable infrastructure and green energy. Infrastructure and sustainability are the central tenets of the current administration’s plans. So, HASI stock should rise given its strong recent results and the present climate.

Oscar Health (OSCR) 

If we’re looking at stocks to buy based in Democratic priorities, however, another central piece of left-wing domestic policy relates to increased access to and affordability of health care. As such, smaller and newer health care firms like Oscar Health should benefit from Biden’s reforms. 

Oscar Health is a relatively young company founded in 2012. The company leverages a full stack technology platform which it uses to offer members individual & family, small group and Medicare advantage plans. The company boasts more than 560,000 members and $2.3 billion in policy premiums.

As part of the Affordable Care Act, a financial ratio called the medical loss ratio became more prominent. Basically, a 50% medical loss ratio would imply that the health care company in question uses 50 cents of every dollar to pay its members’ medical claims. 

In 2020, the average medical loss ratio across health care companies was 74%. However, Oscar Health boasts an 84.7% medical loss ratio during that same period. This implies that members have an easier time getting Oscar Health to pay for their claims than other health care companies. 

Right now, analysts give OSCR stock an average target price of $38. It currently costs a little over $14 per share.

Stocks to Buy: Amedisys (AMED) 

Next up on this list of stocks to buy is another health play, AMED stock. Earlier this year, one Yahoo! article pointed toward a burgeoning niche within health care: home and community-based services. That’s where Amedisys comes in. Biden intends to spend $400 billion for increased access to home and community-based care for the elderly and disabled. That should do wonders for AMED.

This company is focused on home health care, hospice and personal care. As an equity, Amedisys is also well-regarded. The shares are considered overweight, anticipated to reach $244.75 — much higher than the current $177 price tag.

In Q2 2021, Amedisys saw revenues increase to $564.2 million, up from $485 million in 2020. That increase was also reflected in the company’s adjusted EBITDA, which hit $83.8 million.

With most of this company’s revenue attributable to home health care and hospice care — two health areas that are being heavily prioritized by Biden and the Democrats — this pick of the stocks to buy should surely benefit. Pair that with the already rosy outlook painted by Wall Street and you have a stock seriously worth considering here.

Caterpillar (CAT) 

Renewable energy and health care aside, though, perhaps the least contentious portion of the proposed money Democrats are seeking to spend is the piece meant for infrastructure. Moving money into enhancing infrastructure is something both Democrats and Republicans can agree on — and that’s why Caterpillar is included in this list of stocks to buy.

If increased infrastructure spending goes through, Caterpillar should experience a boom in sales as more projects require more heavy equipment. Pretty straight forward, right? Essentially, it is. That’s part of the reason CAT stock is projected to rise to an average target price of $236, or even as high as $303 per share.

Factor in the dividend — which yields an additional 2.10% — and things look even brighter. Caterpillar is a Dividend Aristocrat, which implies stability across a variety of economic situations. The stock is expected to provide capital returns and a dividend even in headwinds. So, with tailwinds and inherent strengths today, who knows just how well CAT will do.

To top it off, this company has shown some strong financial results recently. In Q2, Caterpillar recorded $12.9 billion in revenue, an increase of 29%. Some $800 million of that revenue was returned to shareholders via dividends and buybacks. 

Stocks to Buy: ArcelorMittal (MT) 

Like Caterpillar, it’s no secret why ArcelorMittal is pegged as one of the stocks to buy right now. MT stock represents the world’s second largest steel company, so it should be flush with opportunity as a result of infrastructure prioritization in the United States. 

And it certainly is. However, there is concern that steel companies may be overheated currently and that a dip is imminent. That concern arises as a result of high steel prices, which are up 87% this year and worrying some analysts about their sustainability. Plus, investors need to be patient with infrastructure spending in the first place — the effects will take some time to materialize. 

Overarching tailwinds aside, though, there are some metrics underpinning ArcelorMittal that should interest investors. For example, MT stock carries a price-earnings (P/E) ratio of 5.58, better than 82% of its industry peers. Further, ArcelorMittal also drives operating margins and net margins well above the 80th percentile of its peers. That’s another way of saying this company is quite profitable. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.