4 Stocks to Buy For Big Tax Cuts Coming End of Year or Next Year

A powerful catalyst for some stocks will be the big tax cut coming by the end of the year or early next year. The idea is to find stocks to buy of companies that are paying the highest in income taxes as these are the companies that will benefit the most when taxes are lowered.

The way this catalyst works is that going into next year, I forecast that we will get some kind of tax reform and tax cuts. Therefore companies that are currently paying high tax rates will have positive earnings revisions as a result of a big Trump tax cut.

Stocks to Buy

#1. Amazon

According to 2015 taxes, Amazon has one of the highest tax rates of any company. The company paid a Federal tax rate of 31.5%. Big tax cuts will impact Amazon in a big way. Amazon is my favorite of the top stocks to buy for future tax cuts.

AMZN presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 998.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 983.11, a stop order could be placed below this zone.

#2. Facebook

In 2015, Facebook paid a Federal tax rate of 78.9%. Facebook disclosed in early 2016 that it could owe billions due to an IRS investigation into the way it moved assets to an Irish subsidiary to avoid higher taxes.

The IRS tax penalty could total $3 billion to $5 billion, plus interest, according to a Facebook filing with the Securities and Exchange Commission.

FB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 155.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 151.81, a stop order could be placed below this zone.

#3. Walt Disney

Disney paid a 2015 Federal tax rate of 33.2% and is one of my least favorite of the stocks to buy because of its current downtrend.

Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 104.34. Right above this resistance zone may be a good entry point.

#4. Altria Group

Altria paid a 2015 Federal tax rate of 29.4% and again is one of my least favorite stocks because of its chart.

Altria Group’s price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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