Goldman Sachs Identifies Potential Stock Winners from Trump’s Tax Bill
Goldman Sachs has pinpointed several stocks that might benefit from the details of President Donald Trump’s recent tax bill. This legislation, which recently passed through the House of Representatives, aims to extend existing tax cuts from Trump’s first term that are set to expire in December. It also introduces new components, including $25 billion allocated for the “Golden Dome” missile defense system. Economists assert that this bill could significantly increase the national debt, driving a sharp rise in U.S. Treasury yields. However, approval in the Senate is uncertain, as some Republican lawmakers are pushing for substantial cuts to Medicaid as part of the agreement. Notably, the bill already proposes the largest cut to food stamps in the history of the Supplemental Nutrition Assistance Program (SNAP).
Despite these challenges, Goldman Sachs, under the guidance of analyst Deep Meta, suggests that certain provisions in the bill could benefit small-cap stocks. These provisions include full deductions for expenses related to domestic manufacturing and the revival of incentives from the 2017 tax law that allow businesses to maximize deductions on capital expenditures and equipment interest costs. Goldman highlights that small and medium-sized businesses with significant capital investments stand to gain the most from these changes. “Small caps generally react more to tax policies due to their domestic focus, leverage levels, and higher tax burdens,” Meta noted in a memo on Wednesday.
This analysis leads to a closer look at specific small-cap stocks that align with the proposed legislation. For instance, shares of Kodiak Gas Services, a company in the natural gas compression sector, experienced a 16% drop up to Thursday in 2025. However, with about 90% of analysts recommending the stock, the consensus price target suggests a potential 30% increase. John Mackay, a Goldman analyst, highlighted expectations of stable capital expenditures and improved profit margins for Kodiak. While overall analyst projections have dipped nearly 10% in 2025, opinions on the burger chain from FactSet remain somewhat divided, with shares aligning with other stocks Goldman views as likely beneficiaries of the tax bill.
