Goldman Sachs said that as Wall Street prepares for President-elect Trump to return to the White House, a group of stocks may benefit the most from his plan to cut the corporate tax rate. Analysts led by David Costin, chief U.S. equity strategist at Goldman Sachs, wrote in a research note on Wednesday that Trump’s victory reduces the political uncertainty hanging over the stock market and serves as a catalyst to help drive stocks broadly higher. near-term catalysts. Some of those moves occurred the day after Tuesday’s election, when the Dow Jones Industrial Average soared 3.6%, the S&P 500 surged 2.5% and the Nasdaq rose nearly 3%, all of which were the largest post-election days in history trend. “Recent strong economic growth data and continued interest rate cuts from the Federal Reserve support a healthy near-term outlook for U.S. stocks as election uncertainty resolves,” Kostin wrote. Overall, Kostin predicts that if the broad market index follows November’s Based on the historical pattern of 4% returns between Election Day and the end of the year, the S&P 500 could end the year at 6,015. However, the fate of the U.S. House of Representatives remains to be seen, which will be crucial to whether Trump wins the White House with a unified government entirely in Republican hands, or faces a divided Congress. While several races for House seats remain close, the chamber tilts toward Republicans, who seized control of the Senate on Tuesday. Costin said that if the Republican administration can quickly pass Trump’s corporate tax cut proposal, Goldman Sachs’s earnings per share growth forecast for S&P 500 companies will increase by four percentage points. Trump favors lowering the corporate tax rate from 21% to 15%. Goldman Sachs expects earnings per share to grow 11% in 2025 and 7% in 2026. To find beneficiaries of lower corporate tax rates, Goldman Sachs screened stocks with the highest median corporate tax rates over the past decade. Companies on the list pay a median corporate tax rate higher than the S&P 500’s median of 21%. Here are some of the stocks on Goldman Sachs’ screens. Disney made the cut. Shares of the entertainment and theme park company have risen about 10% through 2024, lagging the broader market. DIS Mountain Disney Stock Year-To-Date. Chief Executive Bob Iger’s media company also has one of the highest 10-year median corporate tax rates found by Goldman Sachs, at 29%. About 72% of analysts surveyed by FactSet have a buy or outperform rating on Disney, and their consensus price targets imply room for an 11% upside for the stock over the next year. Hilton Worldwide Holdings Inc. also appears on Goldman Sachs’ screens. Shares of the hotel and resort operator are up more than 35% through 2024, outperforming the broader market. Hilton also pays a 10-year median corporate income tax of 29%. HLT YTD Hilton Worldwide Holdings Inc. stock. Hilton’s third-quarter profit last month beat Wall Street forecasts for revenue and profit, although its full-year profit outlook missed analysts’ expectations polled by FactSet. Other names on Goldman’s list include Delta Air Lines and American Express.
