return Trump administration Will seek further tax reform for congressional approval. They plan to make the 2017 Trump tax cuts permanent and lower some rates. The corporate tax rate will be reduced to 15% while the child tax credit will be increased. A lot of green energy The 2022 Inflation Reduction Act is expected to eliminate tax breaks. Jefferies believes that small cap companies in financial, industrialConsumers, and Basic materials sector are poised to make the most of it. Here are seven companies that investors may want to look at that will benefit from tax reports.
Wingstop: A 7% EPS bump is no chicken scratch
Wingstop today
(as of 12:09 PM ET)
- 52-week range
- $240.60
▼
$433.86
- Dividend yield
- 0.33%
- P/E ratio
- 95.28
- Price target
- $368.74
Fast-casual restaurant operator Wingstop Inc. Nasdaq: Wing There is a winner.
The company reported third quarter 2024 domestic comparable sales growth of 20.9% YoY.
A 500 bps cut in its tax rate could translate into a 6% to 7% EPS bump, according to Jefferies analyst Andy Barish. Wingstop offers domestic and international franchises, but domestic operations will benefit the most.
Post Holdings: It pays to sell in the United States
Post today
(as of 12:27 pm)
- 52-week range
- $85.17
▼
$121.07
- P/E ratio
- 21.40
- Price target
- $124.17
Cereal and packaged food producers Post Holdings Inc. NYSE: Post Generates between 80% and 90% of its revenue Domestically.
According to Jefferies analyst Rob Dickerson, changes in tax policy could affect the post rate by 400 bps to 450 bps.
This could result in free cash flow (FCF) growth of around 4% over the next three years compared to current consensus estimates.
Valvoline: Adjusted earnings-per-share could rise 6%
Valvoline today
(as of 12:34 pm)
- 52-week range
- $33.86
▼
$48.26
- P/E ratio
- 24.09
- Price target
- $46.25
Automobile service center operators and franchisors Valvoline Inc. NYSE: VVV One of the highest tax rates of 25.5% in 2024 will see some relief.
It will be a high beneficiary as a result of lower corporate taxes.
According to Jefferies analyst Brett Jordan, a 500 bps corporate tax cut would reduce its tax rate to 20%, which would trickle down to its bottom line, boosting its adjusted EPS by 6%.
BJ’s: The warehouse club operator could see an additional 7% full-year EPS bump
B.J. The wholesale club today
(as of 12:34 pm)
- 52-week range
- $63.73
▼
$99.91
- P/E ratio
- 22.83
- Price target
- $93.25
Proceedings of the warehouse club BJ’s Wholesale Club Holdings Inc. NYSE: B.J Set to see full-year 2025 EPS estimates range from $4.30 to $4.60 on a 500 bps tax cut.
That would equate to an additional $40 million in net income, or adding 7% to the bottom line, according to Jefferies discount retailer analyst Corey Tarlow.
This additional income could give BJ more flexibility to invest in growth initiatives or return value to shareholders.
Hilton: An additional $8 per share of adjusted FCF and EPS could be material
Hilton Worldwide Today
(as of 12:27 pm)
- 52-week range
- $166.92
▼
$255.86
- Dividend yield
- 0.24%
- P/E ratio
- 53.80
- Price target
- $228.71
Jefferies gaming, lodging, and entertainment analyst David Katz predicts the hotel operator Hilton Worldwide Holdings Inc. NYSE: HLT It would see its full-year 2025 adjusted FCF increase by about $27 million for every 100 bps tax rate cut.
A 500 BPS tax cut would equate to a $134 million bump in its adjusted 2025 FCF, reducing its corporate tax rate to 25.7%.
The bottom line is that full-year 2025 EPS upside can be had for an additional $8 per share.
Best Buy: Net income can face a 6% increase
Buy the best today
(as of 12:34 pm)
- 52-week range
- $69.29
▼
$103.71
- Dividend yield
- 4.12%
- P/E ratio
- 15.62
- Price target
- $101.06
Big box retailer of consumer electronics Best Buy Inc. NYSE: BBY A 500 bps drop in the corporate tax rate could reduce its annual tax rate from 24% to 19%.
Based on Street estimates for calendar year 2025, Best Buy could see net income and EPS grow by 6%.
That could generate $93 million in cash, which Jefferies analyst Jonathan Matuszewski believes the company will use to buy back more shares and update interior store displays.
Bellring Brands: See income 6% to 7% pump
Bellring brand today
(as of 12:32 pm)
- 52-week range
- $48.06
▼
$79.90
- P/E ratio
- 41.83
- Price target
- $75.60
According to Jefferies Beverage, Consumer Products, and Health & Wellness Analyst Kamil Gajrawala, the healthy snack and protein supplement producer BellRing Brands Inc. NYSE: BRBR A 500 bps tax rate cut will deepen near-term reinvestment plans for marketing and innovation.
Lowering the tax rate from 24.5% to 19.5% could boost near-term EPS by 6% to 7%.
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