Trump Tax Reforms: 7 Stocks That Could Benefit in 2025

Tax Reform Implications - The returning Trump administration plans to seek more tax reforms, including making the 2017 tax cuts permanent and lowering the corporate tax rate to 15% [1] - The child tax credit is expected to be increased, while many green-energy tax breaks from the 2022 Inflation Reduction Act may be terminated [1] - Smaller cap companies in the financial, industrial, consumer, and basic materials sectors are anticipated to benefit the most from these tax reforms [1] Company-Specific Insights - Wingstop Inc.: The company reported a 20.9% year-over-year growth in domestic comparable sales for Q3 2024. A 500 basis points reduction in its tax rate could lead to a 6% to 7% increase in EPS [3][9] - Post Holdings Inc.: Generates 80% to 90% of its revenues domestically. Tax policy changes could impact its tax rate by 400 to 450 basis points, potentially increasing free cash flow by around 4% over the next three years [5][6] - Valvoline Inc.: Positioned to benefit from a reduction in its tax rate from 25.5% to 20%, which could boost adjusted EPS by 6% [7][9] - BJ's Wholesale Club Holdings Inc.: Expected to see full-year 2025 EPS estimates rise from $4.30 to$4.60 due to a 500 basis points tax cut, equating to an additional $40 million in net income [11][12] - **Hilton Worldwide Holdings Inc.**: Anticipates an increase of nearly$27 million for every 100 basis points tax rate reduction, with a potential $134 million bump in adjusted free cash flow from a 500 basis points cut [13][14] - **Best Buy Inc.**: Could see its annual tax rate drop from 24$93 million in cash for share buybacks and store updates [16][17] - BellRing Brands Inc.: A tax rate cut from 24.5% to 19.5% could lead to a 6% to 7% increase in near-term EPS, allowing for deeper reinvestment in marketing and innovation [18][19]