Goldman says buy these stocks that are set to benefit most from Trump tax cuts

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These companies could grow more quickly thanks to lower corporate tax rates, according to Goldman Sachs.

As Wall Street gears up for President-elect Donald Trump's return to the White House, one subset of stocks stands to potentially benefit the most from his plan to cut corporate tax rates, according to Goldman Sachs. Trump's victory reduces the political uncertainty hanging over stocks and serves as a near-term catalyst to help drive equities broadly higher, analysts led by Goldman chief U.S. equity strategist David Kostin wrote in a research report on Wednesday.

A unified Republican government that swiftly passes Trump's proposed corporate tax cuts could boost Goldman's earnings per share growth forecast for S & P 500 companies by four percentage points, Kostin said. Trump favors slashing the corporate tax rate to 15% from 21%. Goldman forecasts EPS growth of 11% in 2025 and 7% in 2026. Previously enacted Trump tax cuts are set to expire at the end of 2025 unless Congress extends them or approves new legislation.

 

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