One Chart Shows How Crucial U.S. Tax Reform Has Been for Stocks
How Companies Are Spending Tax Gains
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The best way for U.S. companies to convince analysts that profits are poised to soar is to trumpet their benefits from the tax overhaul.
“The majority of companies (about 80 percent) are providing guidance on future tax burdens,” Jonathan Golub, Credit Suisse’s chief U.S. equity strategist, wrote in a note Friday. “Those companies providing guidance are seeing their earnings per share rise 8.7 percent (versus levels before the tax changes were signed into law) versus only 1.2 percent for those that haven’t yet given guidance.”