Tax reform is expected to boost the market, but certain stocks will certainly benefit more than others, two experts told CNBC on Friday.
He likes the companies with or without tax relief, but noted they do pay higher taxes.
"If there is tax relief, they are going to get a nice 5 or 10 percent earnings kicker on top of better earnings next year and they are all selling at pretty reasonable valuations," the chief investment officer at Matrix Asset Advisors said in an interview with "Closing Bell."
Senate Majority Leader Mitch McConnell told reporters on Friday that Senate Republicans have enough votes to pass their bill. Once that happens, the House and Senate must reconcile their bills and then send a final version to President Donald Trump to sign into law.
These "boring" stocks have 90 percent of their revenues coming from the U.S., he told "Closing Bell."
"These companies are growing, profitable, well-capitalized. Even without the tax break, we think that these companies can outperform the S&P 500 with considerably less volatility," Morganlander said.
However, Katz had a word of advice: Don't chase the stocks if the Senate passes its bill because there's still a lot that happens before the legislation becomes law.
In other words, tax relief isn't about whether there will be a one-week jump, he said. Instead, it "sets the tone for a better market for the next six to 12 months because you're going to have a better economy and better earnings."
Disclosures: Matrix clients and Katz own SBL, TGT, T and WFC. Washington Crossing Advisors owns HSY, DPS and HRL.