Trump’s tax plan could bring $250 billion into the US — here are the companies set to benefit most

President Donald Trump's tax plan could bring $250 billion into the US in the form of repatriated overseas cash.

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President Donald Trump’s tax plan could bring $250 billion into the US in the form of repatriated overseas cash.
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Justin Merriman/Getty Images

President Donald Trump’s new tax plan could cause a tidal wave of internationally held cash to flood back into the US.

The repatriation tax holiday outlined in the plan, for which details were released on Thursday, is designed to incentivize US-based companies that do big business overseas to bring those profits back home.

By Goldman Sachs’ calculation, S&P 500 companies hold $920 billion of untaxed overseas cash, and the firm estimates that $250 billion of that would be repatriated. Looking at all US-based companies, Citigroup says there’s a whopping $2.5 trillion of capital stashed internationally.

Once a company brings that money back to the US, it has a few options for how to use it. The first is reinvestment into core businesses – this is most likely the avenue policymakers would prefer, as it holds the most direct bearing on economic expansion.

Another option is for a company to repurchase its shares – this would be beneficial to stock prices and, by extension, the market as a whole. Buybacks are a good way to achieve immediate share appreciation and signal to investors that a stock is viewed as undervalued.

And regardless of how the cash is used, a tax break for multinational companies at least partially addresses what a recent World Economic Forum survey identified as the most problematic factor for doing business: tax rates.

So with that established, which companies stand to benefit most? Goldman says it’s those holdings the most post-tax cash overseas relative to their market cap – a group heavily concentrated in the tech and healthcare sectors.

Back in late September, after the initial tax plan framework was released, the firm put together a handy list of the stocks that fit the bill. Here are the ones it has identified as the top 13 beneficiaries.


13. General Electric

source
Markets Insider

Ticker: GE

Sector: Industrials

Total return year to date: -19%

Overseas cash: $35 billion

Overseas cash as % of market cap: 14%


12. Foot Locker

source
Markets Insider

Ticker: FL

Sector: Consumer discretionary

Total return year to date: -52%

Overseas cash: $1 billion

Overseas cash as % of market cap: 15%


11. Citrix Systems

source
Markets Insider

Ticker: CTXS

Sector: Tech

Total return year to date: 7%

Overseas cash: $2 billion

Overseas cash as % of market cap: 16%


10. Western Digital

source
Markets Insider

Ticker: WDC

Sector: Tech

Total return year to date: 29%

Overseas cash: $5 billion

Overseas cash as % of market cap: 16%


9. Waters Corp.

source
Markets Insider

Ticker: WAT

Sector: Healthcare

Total return year to date: 35%

Overseas cash: $3 billion

Overseas cash as % of market cap: 17%


8. Ralph Lauren

source
Markets Insider

Ticker: RL

Sector: Consumer discretionary

Total return year to date: -1%

Overseas cash: $1 billion

Overseas cash as % of market cap: 20%


7. Microsoft

source
Markets Insider

Ticker: MSFT

Sector: Tech

Total return year to date: 22%

Overseas cash: $128 billion

Overseas cash as % of market cap: 20%


6. Oracle

source
Markets Insider

Ticker: ORCL

Sector: Tech

Total return year to date: 27%

Overseas cash: $48 billion

Overseas cash as % of market cap: 22%


5. Amgen

source
Markets Insider

Ticker: AMGN

Sector: Healthcare

Total return year to date: 30%

Overseas cash: $36 billion

Overseas cash as % of market cap: 24%


4. Apple

source
Markets Insider

Ticker: AAPL

Sector: Tech

Total return year to date: 33%

Overseas cash: $216 billion

Overseas cash as % of market cap: 25%


3. Qualcomm

source
Markets Insider

Ticker: QCOM

Sector: Tech

Total return year to date: -18%

Overseas cash: $30 billion

Overseas cash as % of market cap: 35%


2. NetApp

source
Markets Insider

Ticker: NTAP

Sector: Tech

Total return year to date: 22%

Overseas cash: $5 billion

Overseas cash as % of market cap: 36%


1. Cisco Systems

source
Markets Insider

Ticker: CSCO

Sector: Tech

Total return year to date: 13%

Overseas cash: $68 billion

Overseas cash as % of market cap: 37%


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