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The returning Trump administration will push for further tax reforms, pending congressional approval. They plan to make Trump’s 2017 tax cuts permanent and even cut some rates. The corporate tax rate will be reduced to 15% and the child tax credit will be increased. Many of the green energy tax breaks included in the Inflation Relief Act of 2022 are expected to be eliminated. Jeffries believes smaller companies in the financials, industrials, consumer goods and basic materials sectors will benefit the most. Here are seven companies investors might want to keep an eye on that could benefit from tax filings.

Wingstop: 7% EPS Improvement Isn’t a Chicken Scratch

Fast food restaurant operator Wingstop Inc. NASDAQ: WING is the winner.

The company reported domestic comparable sales growth of 20.9% year over year in the third quarter of 2024.

According to Jeffries analyst Andy Barish, a tax rate cut of 500 bps. could lead to a 6-7% increase in earnings per share. Wingstop offers domestic and international franchises, but domestic operations will benefit the most.

Postal holdings: profitable to sell in the USA

Manufacturer of cereals and packaged food products Post Holdings Inc. New York Stock Exchange: message generates 80% to 90% of its revenues domestically.

Changes in tax policy could impact Post’s rate by 400-450 bps, according to Jeffries analyst Rob Dickerson.

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

Valvoline: adjusted earnings per share could rise 6%

Car service operator and franchisor Valvoline Inc. New York Stock Exchange: BBB will get some relief thanks to one of the highest tax rates of 25.5% in 2024.

This will be the main beneficiary of lower corporate taxes.

According to Jeffries analyst Bret Jordan, a 500 bps corporate tax cut. will reduce the tax rate to 20%, which will go directly to net income, increasing adjusted earnings per share by 6%.

BJ’s: Warehouse Club operator could see full-year EPS growth of 7%

Warehouse club work Wholesale company BJ’s Club Holdings Inc. New York Stock Exchange: B.J. Full-year 2025 earnings per share estimates are expected to jump from $4.30 to $4.60 with a 500 basis point tax cut.

That would mean an additional $40 million in net income, or 7%, added to net income, according to discount retailer Jeffries analyst Corey Tarlow.

This additional income could provide BJ with greater flexibility to invest in growth initiatives or return profits to shareholders.

Hilton: Additional $8 per share in adjusted free cash flow and earnings per share could materialize

Jeffries gaming, lodging and leisure analyst David Katz evaluates the hotel operator Hilton Worldwide Holdings Inc. New York Stock Exchange: HLT full-year 2025 adjusted free cash flow will increase by nearly $27 million for every 100 bps. tax rate reduction.

A 500 BPS tax cut would be equivalent to a $134 million increase in adjusted free cash flow in 2025, lowering the corporate tax rate to 25.7%.

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

Best Buy: Net profit could rise 6%

Large-scale consumer electronics retailer Best Buy Inc. New York Stock Exchange: BBY could see the annual tax rate drop from 24% to 19% with a 500 bps reduction in the corporate tax rate.

For the 2025 calendar year, Best Buy estimates net income and earnings per share will grow an additional 6%.

That could bring in $93 million in cash, which hardline Jeffries analyst Jonathan Matuszewski believes the company will use to buy back more shares and renovate store interiors.

BellRing Brands: revenues grew by 6–7%

Healthy snacks and protein supplement maker BellRing Brands Inc., according to beverage, consumer products and health and wellness analyst Jeffries Kaumil Gajrawal. New York Stock Exchange: BRBR will deepen near-term plans to reinvest in marketing and innovation by cutting the tax rate by 500 basis points.

A reduction in the tax rate from 24.5% to 19.5% could boost short-term earnings per share by 6-7%.

You might want to hear this before you consider Wingstop.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and Wingstop wasn’t on the list.

While Wingstop currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here

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