| 2017-12-09 09:05:16|
JACK, LOCO… 09:05 12/09 12/09/17
Week in review: How Trump's policies moved stocks
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. RESTAURANTS: On Monday, Baird analyst David Tarantino told investors that he believes most restaurant chains would benefit from tax reform. Jack in the Box (JACK), El Pollo Loco (LOCO), Wingstop (WING), Dunkin' Brands (DNKN), McDonald's (MCD), Yum! Brands (YUM), Buffalo Wild Wings (BWLD), and Texas Roadhouse (TXRH) appear to be best positioned to show meaningful step-up in comps following tax cuts, he contended. Wells Fargo analyst Jeff Farmer voiced a similar opinion, adding that small cap companies like Del Taco (TACO), Habit Restaurants (HABT), El Pollo Loco, Shake Shack (SHAK) and Noodles & Company (NDLS) could see the largest EPS accretion tailwind from a reduced corporate tax rate, with Red Robin (RRGB), Restaurant Brands (QSR), Yum! Brands and Bloomin' Brands (BLMN) the companies that could see the smallest tailwind. Meanwhile, Credit Suisse analyst Jason West said he sees Shake Shack, Chipotle (CMG), Jack in the Box, Wingstop, and Dunkin' Brands as the top tax reform beneficiaries. 2. SUPERNUS: Earlier this week, Janney Capital analyst Ken Trbovich upgraded Supernus (SUPN) to Buy from Neutral, calling it the best positioned among the companies he covers to be an immediate beneficiary of lower U.S. corporate tax rates. The analyst noted that a reduction in federal corporate taxes would provide a significant boost to the earnings outlook for Supernus.3. SOLAR/WIND SECTOR: On Wednesday, Roth Capital analyst Philip Shen told investors that he believes the Senate Tax Cuts and Jobs Act includes multiple elements that could negatively affect renewable tax equity capacity. Near-term, the analyst believes that continued negotiations on the Hill could cause increased volatility for his universe of stocks with exposure to the U.S. solar and wind markets, such as AMSC (AMSC), Broadwind Energy (BWEN), 8point3 Energy (CAFD), Canadian Solar (CSIQ), Daqo New Energy (DQ), Enphase Energy (ENPH), First Solar (FSLR), Hannon Armstrong (HASI), Hanwah Q CELLS (HQCL), JA Solar (JASO), JinkoSolar (JKS), SolarEdge (SEDG), Sky Solar (SKYS), ReneSola (SOL), Sunworks (SUNW), and TPI Composites (TPIC). 4. OTHERS IMPACTED BY TAX REFORM: Analysts also see Boston Beer (SAM), Dr Pepper Snapple (DPS), National Beverage (FIZZ), Monster Beverage (MNST), Huntington Ingalls (HII), Boeing (BA), GMS Inc. (GMS), Beacon Roofing (BECN), Fortune Brands (FBHS), Masco (MAS), Visa (V) and MasterCard (MA) as benefiting the most from a potential tax reform, while Brands (STZ, STZ.B) and Lockheed Martin (LMT) may benefit the least. 5. INFRASTRUCTURE SECTOR: According to a report by Bloomberg on Thursday, President Trump's infrastructure plan is expected to be released in early January. Companies that could benefit from infrastructure plans include Vulcan Materials (VMC), Fluor (FLR), Martin Marietta Materials (MLM), Aecom (ACM), CB&I (CBI), Jacobs Engineering (JEC), Granite Construction (GVA), Eagle Materials (EXP), and U.S. Concrete (USCR), and Caterpillar (CAT). 6. STEEL DYNAMICS: Later in the week, Steel Dynamics (STLD) said it was pleased with the announcement by the Department of Commerce concerning the preliminary affirmative circumvention determination against flat roll steel from China processed into cold roll and corrosion resistant flat roll steel in Vietnam. The circumvention investigation was made pursuant to a petition filed by Steel Dynamics on September 22, 2016. "Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.
See Street Research during your Free Trial