What is Trump's 'Big Beautiful Bill' and how does it affect stocks?

Trump's 'Big Beautiful Bill' is legislation that recently advanced through the U.S. Senate. It focuses on making the 2017 tax cuts permanent while increasing government spending in three key areas: defense, border security, and domestic energy production. For stocks, this means companies in these sectors could potentially receive more government contracts, benefit from tax savings, and see increased demand for their products and services. The stocks in this group were selected specifically because they operate in these sectors and could directly benefit from this legislative initiative.

Why are defense contractors included in this stock group?

Defense contractors like Lockheed Martin, Northrop Grumman, and Raytheon are included because they would be direct beneficiaries of increased defense spending proposed in the bill. These companies develop and manufacture military equipment, aerospace technology, and defense systems that the government purchases. When defense budgets increase, these companies typically receive larger contracts for their products and services, which can positively impact their revenue, earnings, and potentially their stock prices.

How do energy companies benefit from this legislation?

Energy companies like Exxon Mobil, Chevron, and ConocoPhillips stand to benefit in multiple ways. First, the bill aims to promote domestic energy production through favorable policies and regulations. Second, these companies would benefit from the permanent extension of corporate tax cuts, improving their after-tax profits. Additionally, companies that provide infrastructure for energy transport (like Enterprise Products Partners) or services for energy production (like Halliburton and Schlumberger) could see increased business as domestic energy activity expands under the proposed legislation.

What does "Potential Profit %" mean in the stock data?

"Potential Profit %" refers to the estimated percentage increase in a stock's value that analysts predict could occur over a specific time period (often 12 months). It represents the difference between an analyst's target price for the stock and its current market price, expressed as a percentage. This metric gives investors an idea of how much upside potential experts believe exists for a particular stock. However, it's important to remember that these are estimates and actual performance may differ significantly from these projections.

What are the risks of investing in policy-driven stock groups like this one?

Policy-driven investments carry specific risks worth considering. First, legislation can change significantly before final passage or may not pass at all, which could impact the expected benefits for these companies. Second, even if the legislation passes, the actual implementation and funding might differ from initial proposals. Additionally, market reactions to policy changes can be unpredictable, and other factors (economic conditions, company performance, industry trends) still affect stock prices. As with any investment, diversification and understanding your risk tolerance are important when considering policy-influenced stock groups.

15 handpicked stocks

Trump's 'Big Beautiful Bill' Beneficiaries

Companies positioned to thrive under Trump's major fiscal bill that just passed a key Senate vote. These stocks were carefully selected by our analysts from sectors that would directly benefit from permanent tax cuts and increased spending on defense, border security, and energy.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Lockheed Martin Corporation

LMT

Current price

$499.79

As a primary U.S. defense contractor, Lockheed Martin would be a direct beneficiary of the increased defense spending allocated in the bill.

Northrop Grumman Corporation

NOC

Current price

$604.74

Northrop Grumman's specialization in advanced aerospace, defense, and space systems positions it to win significant contracts from an expanded militar...

Northrop Grumman's specialization in advanced aerospace, defense, and space systems positions it to win significant contracts from an expanded military budget.

General Dynamics Corporation

Current price

$341.67

The company's role in manufacturing land combat vehicles and nuclear-powered submarines aligns directly with the bill's defense spending priorities.

RTX Corp

RTX

Current price

$166.63

Kratos Defense & Security Solutions Inc

KTOS

Current price

$95.03

Leonardo DRS, Inc.

DRS

Current price

$44.58

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+3.66%

≈

About This Group of Stocks

Our Expert Thinking

This collection targets companies set to benefit from a major policy shift in U.S. fiscal approach. The advancement of Trump's bill through the Senate signals a commitment to permanent corporate tax reductions and strategic government spending that could directly boost revenues for these selected firms.

What You Need to Know

This is a tactical, event-driven investment opportunity focused on specific sectors directly impacted by new fiscal policies. Companies in this group span defense contractors, border security providers, and domestic energy producers – all positioned to potentially receive increased government contracts or tax benefits.

Why These Stocks

Each company was specifically selected based on how their business aligns with the bill's key provisions. These aren't random picks – they represent businesses that our analysts have identified as potential direct financial beneficiaries of this legislative push, from military technology providers to energy infrastructure developers.

Group Performance Snapshot

3.67%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 3.67% over the next year.

15 of 15

Stocks Rated Buy by Analysts

15 of 15 assets in this group are rated Buy by professional analysts.

5% vs 4%

Group Growth vs Bank interest

This group averaged a 5% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

📝

Legislative Momentum

The Senate's procedural vote has created real momentum for this bill, and these companies are positioned at the crossroads of policy and profit potential. When government spending priorities shift, big opportunities follow.

💰

Direct Spending Beneficiaries

These aren't companies that might indirectly benefit – they're in line to potentially receive billions in direct government contracts and tax benefits. That's the kind of clear connection that can drive stock performance.

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Triple-Sector Advantage

By spanning defense, border security, and energy, this collection offers exposure to three key spending priorities in a single group. This diversified approach helps capture opportunities across multiple policy initiatives.

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