President Donald Trump criticized Nordstrom in a controversial tweet Wednesday because of the retailer's decision to no longer carry his daughter Ivanka Trump's brand.
But what the president may not realize is that he's likely to give the upscale department store chain a giant boost with his upcoming tax reform plan.
Nordstrom initially sold off after Trump's tweet, however the shares recovered their losses and closed up 4 percent Wednesday.
@realDonaldTrump: My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person -- always pushing me to do the right thing! Terrible!
The stock extended gains Thursday after Trump announced he will reveal details of his business tax cut plan in a few weeks. Nordstrom is on the list of 25 stocks Wall Street firms believe will benefit most from Trump cutting taxes. In fact, three top banks have told clients to buy Nordstrom because it will be a big winner in corporate tax reform.
"U.S. companies with high effective tax rates and high domestic revenue exposure will disproportionately benefit from a reduction in tax rates," JPMorgan strategist Dubravko Lakos-Bujas said.
Nordstrom was a member of the top 10 companies with the highest tax rates, which Lakos-Bujas highlighted.
Similarly, Goldman Sachs strategist David Kostin included Nordstrom in his "High Tax Rate" basket in a note to clients on Jan. 18.
"Stocks with the highest effective tax rates will be the clearest beneficiaries of any potential tax reform," Kostin wrote.
Finally, RBC Capital strategist Jonathan Golub also included the retailer in his "Trump-ed Up" model portfolio on Feb. 2, due to its high effective tax rate and domestic sales orientation.