The Best Stocks for the Rest of Trump’s Term: Lowe’s (LOW)
Another one of Donald Trump’s ambitions is the mass lowering of tax rates … corporate and personal. The effort has been met with a little too much resistance thus far, but it’s still on the radar.
The proposal currently on the table isn’t too specific, but it does include a tax rate of just 15% for businesses, and just three individual tax brackets — 10%, 25% and 35%.
Lower tax rates will help make all U.S. companies more profitable, who on average dish out 28% of their net income to the IRS. But it will be of the biggest benefit to a company like Lowe’s Companies, Inc. (NYSE:LOW), which sports a hefty tax rate of 42.4%.
There’s also the added bonus that Lowe’s finally seems to be firing on all cylinders. Its fourth quarter was a blowout affair that saw the DIY retailer grow same-store sales by more than 5% — without sacrificing margins!