Now the tax bill has passed –
William O’Neil data shows CVS Health $CVS has a 38.9% effective tax rate, tops among consumer staples companies. Aetna $AET is another high-tax company. CEO Larry Merlo said recently $CVS would take some of its tax windfall and reinvest it in reconfiguring its stores to provide more health services.
“Companies with businesses that are primarily domestic-focused tend to have higher tax rates on average. Similarly, small-cap stocks, which are generally more U.S.-centric, could see strong earnings revisions,” wrote William O’Neil chief investment strategist Randy Watts and senior equity analyst Romeo Alvarez.
Source: IBD