Labor’s 2025 Win: 5 Stocks Set to Soar Under the New Government

As Australia heads into a new political era with Labor’s win in 2025, investors are paying close attention to the policies that will shape the economy over the next few years. Labor’s agenda, which includes a strong commitment to renewable energy, healthcare reform, infrastructure projects, and tourism recovery, presents significant investment opportunities.

In our view, this political shift provides a perfect backdrop for long-term growth in several sectors. Key industries such as clean energy, healthcare, infrastructure, and travel are expected to thrive, and certain companies are well-positioned to capitalise on these changes. This article explores five stocks that are primed to benefit from Labor’s 2025 win, making them compelling options for savvy investors looking to diversify and potentially maximise returns in a rapidly changing market.

 

Fortescue Metals Group Ltd (FMG)

Fortescue Metals Group, a leader in the iron ore sector, has become a global force in the mining industry. However, its future lies in sustainable energy and green technologies, aligning perfectly with the Australian Labor Party’s ambitious clean energy goals. The ALP has made it clear that transitioning to renewable energy is a key priority, with a target to reduce carbon emissions by 43% by 2030.

Fortescue is already a front-runner in this transition. The company has committed to becoming a global leader in the green hydrogen sector, investing heavily in hydrogen production. With Labor’s commitment to supporting green energy projects, Fortescue is poised to benefit from government incentives aimed at supporting the renewable energy sector. Additionally, the push to decarbonise Australia’s economy will likely increase demand for Fortescue’s clean energy offerings, boosting its stock price in the coming years.

Why invest in Fortescue?

• Labor’s push towards decarbonisation and renewable energy.
• The company’s significant investments in hydrogen and green technologies.
• A strong pipeline of projects that align with government sustainability targets.

The future of Fortescue lies in its transition from a traditional mining company to a clean energy powerhouse. Investors can expect long-term growth potential as Fortescue leads the way in the shift to green energy, making it a top stock to consider under Labor’s government.

 

AGL Energy Ltd (AGL)

AGL Energy is another major player in Australia’s energy sector, and its position is strengthening as the company moves towards a cleaner, greener future. As one of the largest electricity and gas suppliers in the country, AGL is pivotal in Australia’s energy transition. The Labor government has made it clear that renewable energy is a top priority, and AGL has been taking significant steps in this direction.

AGL is investing heavily in wind and solar power, moving away from coal and gas. As part of its broader strategy, the company is focused on delivering cleaner energy to Australians, aligning with Labor’s goal of achieving a 50% share of renewables in the energy mix by 2030. With Labor’s plans to fund renewable energy projects and provide incentives for green technologies, AGL is well-positioned to benefit from these initiatives, making it an attractive stock for investors looking for long-term stability and growth.

Why invest in AGL?

• AGL’s transition to renewable energy aligns with Labor’s green energy targets.
• Significant investments in solar and wind projects, which are key to future growth.
• Positioned to benefit from the government’s commitment to clean energy.

As a key player in Australia’s energy landscape, AGL is set to benefit from the growing demand for renewable energy. The company’s ongoing transformation provides a unique investment opportunity for those looking to capitalise on the shift to cleaner energy under the new government.

 

Qantas Airways Limited (QAN)

In the wake of Labor’s victory in 2025, the tourism and travel sectors are set to see a significant boost, and Qantas Airways is in an excellent position to benefit from this. With Labor focusing on revitalising the tourism industry, promoting international trade, and reducing carbon emissions from aviation, Qantas is poised to see both short- and long-term growth.

Labor’s policies supporting the aviation sector, including initiatives aimed at carbon-neutral aviation, make Qantas’s commitment to achieving net-zero emissions by 2050 even more relevant. Additionally, the government’s push to increase international travel and tourism will directly benefit Qantas, which is Australia’s flagship carrier. With domestic travel continuing to recover post-pandemic and international tourism likely to grow, Qantas is primed for a strong rebound.

Why invest in Qantas?

• Labor’s support for the aviation and tourism sectors is a positive catalyst for Qantas.
• Strong recovery potential as international and domestic travel increases.
• Long-term growth prospects with a focus on sustainable aviation.

The combination of government support for the aviation industry, Qantas’s sustainability initiatives, and growing travel demand makes this stock a compelling choice for investors. Qantas represents both a recovery play and a long-term growth opportunity in the tourism sector.

 

Transurban Group (TCL)

Transurban Group is a leading toll road operator in Australia, managing key infrastructure assets across major cities. The Labor government has committed to boosting infrastructure development, particularly in urban transport systems, which bodes well for Transurban’s future. Labor’s focus on improving public transport, reducing congestion, and investing in sustainable infrastructure projects aligns perfectly with Transurban’s business model.

With the population in major cities like Sydney, Melbourne, and Brisbane continuing to grow, the demand for effective transport solutions will only increase. Transurban’s strong presence in Australia’s urban infrastructure market positions it to benefit from continued government investment in roads, tunnels, and public transportation systems. The company is also expected to benefit from increased toll road usage as urbanisation continues and traffic congestion becomes a more pressing issue.

Why invest in Transurban?

• Labor’s emphasis on infrastructure development creates opportunities for growth.
• Increased demand for urban transport solutions and toll roads.
• Long-term growth potential as cities expand and require more efficient transport networks.

Transurban is set to benefit significantly from the ongoing investment in Australia’s infrastructure. As the demand for urban transportation solutions continues to rise, Transurban’s toll roads will play a key role, making it an attractive stock for infrastructure-focused investors.

 

CSL Limited (CSL)

As a global leader in biotechnology, CSL Limited is another company poised to benefit from Labor’s focus on healthcare reform and innovation. CSL produces life-saving treatments for rare diseases, and its commitment to research and development has positioned it as one of the most innovative biotech companies globally. The Labor government has indicated strong support for healthcare, medical research, and expanding access to essential treatments, which is likely to benefit CSL’s business.

CSL’s strong portfolio of therapies, including blood plasma products and vaccines, aligns well with Labor’s health priorities. The company’s ongoing investments in R&D and its global reach make it a key player in the healthcare space. With Australia’s healthcare system expected to receive more funding and support under Labor’s leadership, CSL’s prospects look even brighter, particularly as demand for innovative healthcare solutions continues to rise.

Why invest in CSL?

• Labor’s focus on healthcare reform supports CSL’s growth in medical research and innovation.
• Strong portfolio of life-saving treatments and therapies.
• Positioned for long-term growth in the global biotechnology market.

CSL offers investors exposure to a rapidly expanding healthcare market. The company’s focus on rare diseases and ongoing investment in biotechnology ensures that it remains at the forefront of the industry, making it a solid choice for investors seeking long-term stability and growth in healthcare.

 

Conclusion: A Bright Future for Investors

Labor’s 2025 win represents a major shift in Australian politics, with a strong emphasis on clean energy, healthcare, infrastructure, and tourism. We believe that these sectors will be key drivers of growth in the coming years, and the five stocks highlighted in this article—Fortescue Metals Group, AGL Energy, Qantas Airways, Transurban Group, and CSL Limited—are well-positioned to benefit from these changes.

For investors, this is an exciting time to consider these companies as potential additions to your portfolio. Each of these stocks offers unique growth opportunities, whether through sustainable energy projects, infrastructure development, healthcare innovation, or tourism recovery. With the government’s supportive policies and their alignment with these industries, these stocks are expected to outperform in the coming years.

In our view, these five stocks represent some of the most promising investment opportunities under Labor’s 2025 win. By strategically investing in these companies, investors can position themselves for success as Australia moves towards a greener, more sustainable, and innovative future.

 

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FAQs

• Why should I invest in renewable energy stocks under Labor’s government?

  Labor’s commitment to renewable energy presents a significant opportunity for growth in clean energy companies. Stocks like Fortescue Metals Group and AGL Energy are well-positioned to capitalise on this trend, driven by strong government support and increasing demand for green energy solutions.

• How will infrastructure development affect stock market investments?

  Labor’s increased spending on infrastructure is expected to drive demand for companies like Transurban, which operate in urban transport and infrastructure projects. As cities grow and transportation networks expand, infrastructure stocks are likely to see long-term growth.

• What role will healthcare reform play in stock market performance?

  With Labor’s focus on healthcare reform, companies like CSL Limited, which invest heavily in medical research and development, are poised for strong growth. The increased government support for healthcare will drive demand for innovative treatments and therapies, benefiting companies in this sector.

• Is Qantas a good investment given the changing government policies?

  Yes, Qantas stands to benefit from Labor’s support for the tourism and aviation sectors. The airline’s commitment to sustainability and its role in Australia’s travel recovery make it an attractive investment opportunity.

• How can I stay informed about the best stocks to invest in under Labor’s government?

  Stay updated on financial news, government policy announcements, and stock analysis reports to identify companies that will benefit from Labor’s policies. These insights will help you make informed decisions about which stocks to include in your portfolio.