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How to trade the tax cut: 6 buys

The "Fast Money" traders discussed which stocks they expect to move higher after the Trump administration releases its tax plan.

Trader Steve Grasso said he likes PulteGroup and KB Home because the homebuilders "stand to benefit the most from any type of lowering of the corporate tax rate."

Trader Tim Seymour said he likes the retailers with SPDR S&P Sector ETF (XRT) because the proposed border adjustment tax was not included as part of the administration's plan.

Trader Pete Najarian said he like transportation names like CSX and Union Pacific because there is still room to run in the stocks, despite their consistent positive performance.

Shares of CSX are up 41 percent year to date and Union Pacific shares have climbed 23 percent in the last 6 months.

Trader Guy Adami said he likes Kansas City Southern as a name to get into because he expects the railway stock to move higher in the long term.

Shares of Kansas City Southern closed 4 percent lower on Wednesday and are down over 10 percent in the last 12 months.

Disclosures:

Pete Najarian owns calls BAC, BUD, BZH, C, CHK, DAL, HAL, HMY, INTC, KMI, MDLZ, RF, TBT, TCK, UNP, VALE, WFM, WFT, WLL, XLNX, XLE. Pete is long stock AAP, AAPL, AMD, BAC, CL, DIS, DLTR, EBAY, EMR, GILD, GM, HUM, IBM, JWN, K, KO,KORS, KMX, LUX, MAR, MOS, MSFT, MRK, PFE, RL, STX, TMX, UNP, V, WDC, WFT.

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT;Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM

Steve Grasso's firm is long stock AON, BX, CUBA, DIA, F, HES, ICE, KDUS, MAT, MFIN, MJNA, MSFT, NE, RIG, SNAP, SPY, SQBG, TITXF, UA, WDR, WPX, ZNGA. Grasso is long stock BABA, CHK, EEM, EVGN, GDX, KBH, MJNA, MO, MON, OLN, PHM, SQ, T, TWTR, VRX. Grasso's kids own EFA, EFG, EWJ, IJR, SPY. NO SHORTS.

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.