Investing

Credit Suisse Identifies 15 Companies as Top Tax Reform Winners

Amazon.com Inc. (NASDAQ: AMZN) may feel like a mistake on this list, due to its actual earnings being so low due to low margins in many key operations. Still, Credit Suisse showed its effective tax rate as 43.4%. The stock was trading down 0.2% at $1,160.42. The 52-week range is $742.00 to $1,213.41. Amazon has a consensus price target of $1,249.82.

Juniper Networks Inc. (NYSE: JNPR), a rival of Cisco Systems in networking technology and equipment, was shown by Credit Suisse as having a sharp 42.9% effective tax rate. The stock recently traded down 0.4%, at $28.27, versus a 52-week range of $23.87 to $30.96. The consensus price target is $27.63.

Schlumberger Ltd. (NYSE: SLB) was shown to have an effective tax rate of 41.7% in the Credit Suisse report. This oil services goliath operates all over the world, and much of its business is outside of the United States. Schlumberger shares were trading up 1.3% to $65.55. Their 52-week range is $61.02 to $87.84, and the consensus price target is $74.58.

Nordstrom Inc. (NYSE: JWN) tops the department store retailers with what Credit Suisse is calling an effective tax rate of 41.6%. The stock was trading up 2.7% to $46.72, which compares to a 52-week range of $37.79 to $61.85. The consensus price target is $42.00.

Anthem Inc. (NYSE: ANTM), the health insurer behind the Blue Cross and Blue Shield program, was also high on the list with a 41.4% effective tax rate. Anthem was trading down 0.3% at $230.91 on last look, in a 52-week range of $140.50 to $236.39. It has a consensus analyst target of $232.17.

Aetna Inc. (NYSE: AET), having reached a merger agreement with CVS, was shown to have an effective tax rate of 41.3%. The company even has said that tax reform played a part into the economics of this merger. Aetna shares were trading up about 1% to $183.25, in a 52-week range of $116.04 to $192.37 and with a consensus price target of $186.00.

Helmerich & Payne Inc. (NYSE: HP) is a contract driller for oil and gas wells in the United States and internationally. Credit Suisse showed its effective tax rate as being 40.8%. Helmerich & Payne traded down 0.3% to $59.40, versus a 52-week range of $42.16 to $85.78. The consensus price target is $50.81.

Lowe’s Companies Inc. (NYSE: LOW) was considerably higher on the list than rival Home Depot, with an effective tax rate of 39.7% per the Credit Suisse data. Lowe’s shares were trading up 3.3% to $87.00. They have traded between $70.49 and $87.26 in the past year, and the consensus analyst price target is $87.52.

American Water Works Co. Inc. (NYSE: AWK) was surprising to see on the list, as it is the largest public U.S. water utility. Credit Suisse showed its effective tax rate to be 39.3%. American Water Works was last seen trading up 0.4% at $91.58, in a 52-week range of $69.96 to $91.97 and with a consensus price target of $90.64.

CVS Health Corp. (NYSE: CVS) comes in at number 15 (discounting IQVIA and its 39.2% effective tax rate, which was skipped in coverage due to conflicting data). CVS Health is officially trying to acquire Aetna (which noted tax benefits as a portion of the deal’s economics), and its effective tax rate according to Credit Suisse is listed as 38.9%. The stock was trading down 3.3%, at $72.67 in a 52-week range of $66.45 to $84.72. Its consensus analyst price target is $84.76.

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