Tags: credit suisse | retail stocks | stimulus | boost

Credit Suisse: 4 Retail Stocks Poised to Get Biggest Stimulus Boost

Credit Suisse: 4 Retail Stocks Poised to Get Biggest Stimulus Boost
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By    |   Wednesday, 23 December 2020 12:02 PM EST

Credit Suisse has selected the potential retail winners in the wake of the $900 billion pandemic relief package reached on Capitol Hill.

Credit Suisse analyst Seth Sigman touts Home Depot (HD), Lowe’s (LOW), Target (TGT), and Tractor Supply (TSCO) as likely key beneficiaries of the aid package, Barron’s said.

With out-of-home activity still very limited, and “very elevated demand even as we have moved further away from the prior stimulus,” the situation looks favorable to some of the same players that got a boost from the first round of aid, he writes.

“Importantly, underlying demand in many of these home-related categories has remained strong, in some cases actually accelerating, despite moving further away from the last stimulus,” he says.

Meanwhile, tucked in among more than 5,000 pages of legislative text, the congressional bill providing COVID-19 relief and 2021 government funding includes dozens of tax breaks for beneficiaries ranging from downtown restaurants and the film industry to motor-sports racetracks, Bloomberg reported.

And many of the benefits will stick around long after the pandemic is over. Besides granting temporary tax credits to help businesses cover the cost of payroll, the bill gives benefits for wind and solar projects and creates a permanent tax break for beer brewers, wine makers and liquor distillers.

Also included is a favorite of President Donald Trump: a write-off for wining and dining business clients.

The inclusion of nearly 80 tax-related provisions in the bill represents an age-old strategy in Washington for many lawmakers and the lobbyists who try to influence them: Attach your favorite tax break to a large, must-pass bill where a couple of extra write-offs won’t stop the momentum toward passage.

COVID-19 relief became the vehicle in 2020, with lawmakers rushing to complete an assistance package and wrap it up with regular appropriations for federal agencies to keep them running through next September.

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StreetTalk
Credit Suisse has selected the potential retail winners in the wake of the $900 billion pandemic relief package reached on Capitol Hill.
credit suisse, retail stocks, stimulus, boost
308
2020-02-23
Wednesday, 23 December 2020 12:02 PM
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