In fanfare fashion, President Trump signed the “Big, Beautiful Bill.” What companies benefit from the tax cut and spending bill?
First, Medicaid cuts will hurt firms like Centene (CNC). The cut in government support for electric vehicles will hurt Tesla (TSLA). Indirectly, CEO Elon Musk criticized the $3.3 trillion in increased spending. This raises the government’s debt. Musk said the bill is a “mockery” of his efforts in cutting costs through the Department of Government Efficiency.
In the technology industry, Cisco Systems (CSCO) CEO Chuck Robbins thinks the bill helps American businesses. It lets the firms plan, invest, and build for the future. Readers may infer that firms like Broadcom (AVGO), ServiceNow (NOW), Alphabet (GOOG), Microsoft (MSFT), and Amazon (AMZN) should benefit from the bill.
The tax cuts on tips, overtime, and car loan interest should help workers. It increases their disposable income. Retail firms like Costco (COST) and Walmart (WMT) should reverse their recent underperformance. WMT stock is range-bound, while COST stock pulled back from $1060 in June to close at $987.02.
The expanded standard deductions for seniors, worth $6,000 for individuals and $12,000 for couples, are a positive development. While it does not help low-income seniors, the upper-middle-class seniors benefit. This would help luxury good providers like Ulta Beauty (ULTA) and Estee Lauder (EL). Consumer defensive firms like Procter & Gamble (PG), Unilever (UL), and Kenvue (KVUE) should also benefit, albeit indirectly.
