Goldman's Trump trade: Buy the most highly-taxed companies

• It's not quite that simple. Goldman screens further, looking for those companies which pay high taxes, but don't spend a lot on employee salaries. The thinking is they'll benefit most in an environment of lower taxes and rising wages.
• The Goldman basket is made up of companies whose 10-year median tax rate was 38% vs. the S&P 500 median of 31%. That basket in 2017 is up 2.1%, besting the S&P 500 by 70 basis points.
• As for labor, the median stock in the basket pays 3% of sales in labor costs vs. the median for the S&P 500 of 11%.
• Most represented in the group are tech companies, among them Alliance Data Systems (NYSE:ADS), F5 Networks (NASDAQ:FFIV), Apple (NASDAQ:AAPL), Skyworks Solutions (NASDAQ:SWKS), and Qualcomm (NASDAQ:QCOM).
• Also in the basket (though we have no detail on individual names) are energy stocks (NYSEARCA:XLE) -energy has the highest tax rate of any sector with a median of 37%.