This U.S. bank could reap the benefits of a Trump tax cut

U.S. Bancorp is well positioned should a tax cut be implemented, but the rally in bank shares means it doesn't look like a bargain today.

Eric Compton 2 March, 2017 | 6:00PM

 

 

Eric Compton: One issue currently on the forefront of investors' minds is: what are future tax rates are going to look like, and what does this mean for stock valuations? One key area we don't hear too many people talking about is the question of: Who is going to harvest the value of any future tax cut over the long term? And we think Morningstar's moat methodology is especially important when trying to answer this question. In general, we think banks with the widest moats will benefit the most over the long term, which brings us to U.S. Bancorp. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
US Bancorp37.62 USD-0.71

About Author

Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

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