As Biden tries to level the economic playing field, these stocks may benefit

U.S. President Joe Biden speaks about his administration's plans to respond to the economic crisis during a coronavirus disease (COVID-19) response event in the State Dining Room at the White House in Washington, January 22, 2021.
Jonathan Ernst | Reuters

As President Joe Biden shifts his focus from pandemic recovery to economic issues like income and wealth inequality, investors can play the change in agenda by snapping up a handful of retail and restaurant stocks.

Bank of America Securities screened its universe of stocks for those that benefit whenever earnings are more evenly distributed across income groups.

The bank's head of U.S. equity strategy Savita Subramanian noted that the Biden administration seems less focused on increasing equity prices and more focused on broadening out growth.

"Policies in place to address the income inequality gap are likely to benefit discount retailers vs. luxury retailers, but could also impact margins for more labor intensive companies levered to minimum wage," she wrote in a note published earlier this week.

"We also screen for companies that are doing better on gender and racial diversity, another key focus of the Biden administration," the strategist added.