TCF Financial CorporationTCF is expected to record an after-tax benefit of nearly $120-$140 million for fourth-quarter 2017. The benefit follows the preliminary revaluation of the company's deferred tax items, following President Trump's recently implemented tax bill.
Notably, the actual net tax benefits might differ after complete evaluation of the company's consolidated financial statements, tax returns of 2017 and final net deferred tax liabilities as of Dec 31, 2017.
Banks with higher deferred tax liabilities will benefit from the reduction in corporate tax rate (from 35% to 21%). Lower rate will reduce the value of liabilities and boost the company's earnings.
Further, following the Tax Cuts and Jobs Act enactment, TCF Financial aims to pay around $5 million as one-time bonuses to eligible team members, earning below $100,000 as full compensation during 2017.
Shares of TCF Financial rose around 27% over the last six months compared with 3.5% rally of its industry . The bank currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Legg Mason Inc. LM has been witnessing upward estimate revisions for the past seven days. Also, the company's shares have returned nearly 10.7% over the past six months. It flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Federated Investors Inc. FII has been witnessing upward estimate revisions for the last 60 days. The company's share have gained 26.4% in six months. It carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. APAM has been witnessing upward estimate revisions for the past month. Additionally, the stock has gained more than 27% in six months. It currently carries a Zacks Rank of 2.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report