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Trump Tax Reforms: 7 Stocks That Could Benefit in 2025

Metaphor for the payment of taxes — Photo

Key Points

  • The Trump administration is expected to seek more tax reforms upon returning to the White House in 2025.
  • The Trump tax cuts of 2017 will be made permanent pending Congressional approval.
  • Many green energy tax breaks from the Inflation Reduction Act will be repealed, but the child tax credit will be hiked.
  • Five stocks we like better than Wingstop.
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The returning Trump administration will seek more tax reforms pending approval from Congress. They plan on making the 2017 Trump tax cuts permanent and even lower some rates. The corporate tax rate will be dropped to 15% while the child tax credit is hiked. Many of the green-energy tax breaks from the 2022 Inflation Reduction Act are expected to be terminated. Jeffries believes smaller cap companies in the financial, industrial, consumer, and basic materials sectors are set to benefit the most. Here are seven companies that investors may want to watch that will gain from tax reports.

Wingstop: A 7% EPS Bump Is No Chicken Scratch

Wingstop Today

Wingstop Inc. stock logo
WINGWING 90-day performance
Wingstop
$246.22 +24.51 (+11.05%)
As of 04/9/2025 04:00 PM Eastern
52-Week Range
$205.60
$433.86
Dividend Yield
0.44%
P/E Ratio
66.37
Price Target
$348.23

Fast-casual restaurant operator Wingstop Inc. NASDAQ: WING is a winner.

The company posted a third-quarter 2024 domestic comparable sales growth of 20.9% YoY.

According to Jeffries analyst Andy Barish, a 500 bps reduction in its tax rate could translate into an incremental 6% to 7% EPS bump. Wingstop offers domestic and international franchises, but the domestic operations would benefit the most.

Post Holdings: It Pays to Sell in the United States

Post Today

Post Holdings, Inc. stock logo
POSTPOST 90-day performance
Post
$116.17 +4.26 (+3.81%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$99.62
$125.84
P/E Ratio
19.14
Price Target
$127.50

Cereal and packaged foods producer Post Holdings Inc. NYSE: POST generates between 80% to 90% of its revenues domestically.

According to Jeffries analyst Rob Dickerson, tax policy changes could impact Post’s rate by 400 bps to 450 bps.

This could result in an increase in free cash flow (FCF) to around 4% over the following three years compared to current consensus estimates.

Valvoline: Adjusted Earnings-Per-Share Could Spike 6%

Valvoline Today

Valvoline Inc. stock logo
VVVVVV 90-day performance
Valvoline
$33.27 +1.79 (+5.69%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$31.02
$48.27
P/E Ratio
15.92
Price Target
$43.67

Automobile service center operator and franchisor Valvoline Inc. NYSE: VVV would find some relief being in one of the highest tax rates at 25.5% in 2024.

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It would be a top beneficiary as a result of lower corporate taxes.

According to Jeffries analyst Bret Jordan, a 500 bps corporate tax reduction would lower its tax rate to 20%, which would go right into its bottom line, boosting its adjusted EPS by 6%.

BJ’s: Warehouse Club Operator Could See Additional 7% Full-Year EPS Bump

BJ's Wholesale Club Today

BJ's Wholesale Club Holdings, Inc. stock logo
BJBJ 90-day performance
BJ's Wholesale Club
$113.01 +1.02 (+0.91%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$71.81
$120.43
P/E Ratio
27.17
Price Target
$110.82

Warehouse club operation BJ’s Wholesale Club Holdings Inc. NYSE: BJ is poised to see full-year 2025 EPS estimates jump from $4.30 to $4.60 on a 500 bps tax cut.

According to Jeffries discount retailer analyst Corey Tarlowe, this would equate to an extra $40 million of net income or 7% added to the bottom line.

This additional income could provide BJ's with more flexibility to invest in growth initiatives or return value to shareholders.

Hilton: An Additional $8 Per Share of Adjusted FCF and EPS Could Materialize

Hilton Worldwide Today

Hilton Worldwide Holdings Inc. stock logo
HLTHLT 90-day performance
Hilton Worldwide
$218.93 +17.65 (+8.77%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$193.86
$275.22
Dividend Yield
0.27%
P/E Ratio
35.60
Price Target
$251.50

Jeffries gaming, lodging, and leisure analyst David Katz estimates hotel operator Hilton Worldwide Holdings Inc. NYSE: HLT will see a nearly $27 million increase for every 100 bps tax rate reduction in its full-year 2025 adjusted FCF.

A 500 BPS tax cut would equate to a $134 million bump in its adjusted 2025 FCF, dropping its corporate tax rate to 25.7%.

The bottom line is that the full-year 2025 EPS upside could materialize into an additional $8 per share.

Best Buy: Net Income Could Face a 6% Bump

Best Buy Today

Best Buy Co., Inc. stock logo
BBYBBY 90-day performance
Best Buy
$63.74 +7.57 (+13.48%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$54.99
$103.71
Dividend Yield
5.96%
P/E Ratio
10.90
Price Target
$91.28

Consumer electronics big box retailer Best Buy Inc. NYSE: BBY could see its annual tax rate drop from 24% to 19% on a 500 bps corporate tax rate drop.

Based on calendar year 2025 street estimates, Best Buy could see net income and EPS grow by an additional 6%.

This could generate $93 million in cash, which Jeffries hardline analyst Johnathan Matuszewski believes the company will use to buy back more shares and update interior store displays.

BellRing Brands: Income See a 6% to 7% Pump

BellRing Brands Today

BellRing Brands, Inc. stock logo
BRBRBRBR 90-day performance
BellRing Brands
$74.68 +5.01 (+7.19%)
As of 04/9/2025 03:59 PM Eastern
52-Week Range
$48.06
$80.67
P/E Ratio
35.06
Price Target
$79.13

According to Jeffries beverages, consumer product, and health & wellness analyst Kaumil Gajrawala, healthy snack and protein supplements producer BellRing Brands Inc. NYSE: BRBR would deepen near-term reinvestment plans for marketing and innovation with a 500 bps tax rate cut.

The tax rate cut from 24.5% to 19.5% could pump up near-term EPS by 6% to 7%.

Should You Invest $1,000 in Wingstop Right Now?

Before you consider Wingstop, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Wingstop wasn't on the list.

While Wingstop currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Jea Yu
About The Author

Jea Yu

Contributing Author

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Wingstop (WING)
3.726 of 5 stars
$246.22+11.1%0.44%66.37Moderate Buy$348.23
Post (POST)
3.1741 of 5 stars
$116.17+3.8%N/A19.14Moderate Buy$127.50
Valvoline (VVV)
4.5706 of 5 stars
$33.27+5.7%0.36%15.92Moderate Buy$43.67
BJ's Wholesale Club (BJ)
2.4605 of 5 stars
$113.01+0.9%N/A27.17Moderate Buy$110.82
Hilton Worldwide (HLT)
4.4985 of 5 stars
$218.93+8.8%0.27%35.60Hold$251.50
Best Buy (BBY)
4.9357 of 5 stars
$63.74+13.5%5.96%10.90Hold$91.28
BellRing Brands (BRBR)
2.3827 of 5 stars
$74.68+7.2%N/A35.06Moderate Buy$79.13
Compare These Stocks  Add These Stocks to My Watchlist 

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