CFRA told clients to buy stocks with high tax rates in which will gain via a corporate rate reduction.
“We see benefits for many U.S. companies, especially those with high corporate tax rates as well as also considerable overseas cash as well as also investments,” the firm’s research team wrote Wednesday.
The firm noted Apple held 94 percent of its $269 billion in cash balances overseas. CFRA predicts the company will repatriate as much as $0 billion back into the U.S. as well as also use most of the proceeds to buy back stock.
In similar fashion, Credit Suisse’s Jonathan Golub shared his list of high tax rate companies in which can thrive on a lower tax rate on Dec. 4.
In regard to specific sectors, JPMorgan analyst Sterling Auty believes software stocks will be big beneficiaries via tax reform.
“The winners in our coverage via the rate reduction would certainly be those companies in which contain the predominant amount of their revenue as well as also/or pre-tax income domiciled within the US as well as also those companies in which are as well as also have been profitable,” he wrote in a note to clients Tuesday.
The analyst said Aspen Technology, SS&C Technologies, Intuit, LogMeIn as well as also Qualys are among the top tax reform “winners” with the highest operating profit margins within the sector.
For investors who want to trade on tax reform being implemented, here are 25 companies Wall Street recommends:
— CNBC’s Jacob Pramuk contributed to This particular report.