Wednesday's tax-cut proposal from the White House may have been scant on details, but the big picture was hard to miss: If it passes, corporations are about to get a big gift in the form of lower tax rates.
That's obviously a good thing for investors -- cutting the corporate tax rate from 35% to 15% would translate into an earnings coup, one that could turn into a lot more upside for the stock market. But there's an even bigger potential windfall that investors should be paying attention to: The one-time tax holiday for U.S. companies that want to repatriate cash from their foreign subsidiaries.
Apple Inc. (AAPL) is the most obvious example. With about $230 billion in overseas cash on its balance sheet, Apple alone currently accounts for about 10% of the total offshore profits held abroad by U.S. firms. If speculation is correct that the Trump administration could cut tax rates on repatriated cash to around 10%, it would effectively add $90 billion in "found money" to Apple's balance sheet.
While Apple is the biggest, it doesn't come with the biggest upside from Trump's tax plan. In fact, there are three big stocks that stand to win more. These three stocks have a higher proportion of overseas cash to their current market capitalizations than Apple does, giving them the biggest potential percent gains if the White House's plan goes through.
Here's a look at the three big stocks that could score the biggest wins from Trump's tax holiday.