National Australia Bank (ASX: NAB) has revised its expectations on the movement for the RBA's cash rate to 2.25% going into Christmas this year. Coupled with a slow mining sector and property market, it is likely to put downwards pressure on the Aussie dollar.
As the US economy gains momentum, it's a double-edged sword for the Australian dollar. However, investors can take advantage of the lower dollar without having to open up a new overseas stockbroking account by finding Australian stocks that will benefit from the lower dollar.
Ainsworth Game Technology (ASX: AGI) recently upgraded its profit guidance by 41% to $65 million for the year ended 30 June 2013. It attributed the gains to foreign currency movements, increased revenue in its Victorian operations and increased revenue from international markets of South America and Asia. Ainsworth has been one of the major success stories of the ASX in the past three years, increasing 2,660%.
Another company that does an increasing amount of business overseas is Amcor (ASX: AMC). Morningstar predicts EPS to increase from a current 51.6 cents per share to 73.8 cents per share by FY 15. In its most recent half-year report, Amcor reported NPAT up 16.3% and the market is expecting healthy results when it releases its full year report on August 19. Currently it derives 31% of revenue from US operations.
Like Ainsworth, Westfield (ASX: WDC) is another family-run company that has successfully migrated its business overseas. Starting from humble beginnings, the retail property giant now has over 100 shopping centres which contain some 22,000 retail stores throughout the world. It pays a dividend of 4.5% and draws 41% of revenue from its Americas division.
Last, but certainly not least, is Cochlear (ASX: COH). Its share price has suffered two substantial falls earlier this year and fell almost 5% yesterday on the back of news that China has granted local manufacturers approval to make cheaper versions of its hearing implant devices. However, Cochlear is the best at what it does and competition is nothing new. Currently pulling 42.2% of revenue from the Americas, investors could do worse than add this stock to their portfolio.
Foolish takeaway
Buying a good stock at good prices should be the priority for any savvy investor. No stock is a buy at any price nor does the lower AUD/USD exchange rate mean companies are gifted profit. The above stocks are well established companies that will only get stronger with a more competitive exchange rate.
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Motley Fool contributor Owen Raszkiewicz owns shares in Cochlear.
