Tax cuts and repatriation should help some stocks more than others.
In a perfect world, cutting the U.S. corporate tax rate could immediately send the broad stock market as much as 11 percent higher, S&P Global Market Intelligence said in a report released Thursday.
But looking at the tax rates for S&P 500 companies last year, industries such as health insurers and homebuilders might benefit more from corporate tax cuts than other sectors.
Most of the companies that are based in the U.S. have a high tax rate as most of their sales come from within the country, said Dan Clifton, head of policy research at Strategas Research Partners. When looking for potential outperformers as tax law changes, he's looking for "companies with a lot of domestic income but also companies with limited exposure to international" inputs.