These 10 companies have reaped the biggest capital gains over the past year - and Biden's tax plan could send them tumbling, Goldman says
- President Biden's proposed hike in the
capital gains taxrate could hurt high-flying stocks, according to Goldman Sachs.
- "High-momentum 'winners' that had delivered the largest gains to investors ahead of the rate hike have usually lagged," Goldman said.
- The 10 stocks listed below have generated eye-popping capital gains over the past year and could suffer if Biden's tax plan is enacted.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
A proposed capital-gains tax hike by President Joe Biden is nothing the stock market can't handle, according to a Friday note from Goldman Sachs' David Kostin.
But some stocks would be more susceptible to losses than others if the proposed tax hike to 39.6% for those making more than $1 million went into effect, according to the note.
"High-momentum 'winners' that had delivered the largest gains to investors ahead of the rate hike have usually lagged," Kostin explained. Over the last few years, stocks within the technology and consumer discretionary sectors have been that largest source of capital gains, meaning those sectors might lag if the tax hike is approved.
These are the ten S&P 500 companies that have delivered substantial capital gains over the past year and would likely lag the broader market if Biden's capital gains tax hike is enacted, according to Goldman Sachs.
1-Year Return: 233%
1-Year Return: 235%
1-Year Return: 237%
7. Enphase Energy
1-Year Return: 321%
1-Year Return: 355%
1-Year Return: 368%
1-Year Return: 392%
1-Year Return: 527%
2. L Brands
1-Year Return: 548%
1. Penn National
1-Year Return: 575%
- A millennial who became a millionaire after the 2008 crash says building wealth is about more than opportunistic investing. You also have to make lifestyle changes and load up on side hustles.
- OnePlus Nord CE 3 leaks ahead of launch – specs, expected launch date and more
- A 53-year-old longevity researcher says his 'biological age' is a decade younger thanks to 4 daily habits — but the science behind them is mixed
- Learning AI can be lucrative: Freshers’ annual pay is ₹10-14 lakh in India, says TeamLease Digital report
- CoCo bonds fall sharply over Credit Suisse deal
- Date night conversations to diet charts – 10 things ChatGPT can help you with
- Gold is bankable, shines more than some western banks say experts
- Fear of financial crisis is keeping investors away from stock markets say experts