Some leading investors and analysts are voicing their concerns that companies exposed to the Australian economy are at risk of further downgrades to earnings over the coming months which could see share prices fall — the suggestion being that prices have run too far ahead of earnings.
However the situation in the USA is starkly different, with evidence of a pick-up in many parts of that economy and a number of market commentators suggesting that there are further upgrades to the earnings of US-focussed businesses to come.
With these macro-economic factors in mind, it could make sense for some investors to increase their exposure to Australian-listed companies that are positioned to benefit from continued US economic growth. Here are six stocks that could fit that bill.
1. Amcor (ASX: AMC) generates sales revenue of roughly $4 billion, which represents 32% of total revenue from its North American operations.
2. Brambles (ASX: BXB) generates 56% or US$2.2 billion of its pallet revenue (which represents the firm's largest division) from the Americas operations.
3. Computershare (ASX: CPU) generates nearly 42% of its revenue, which represents US$841 million from the USA.
4. CSL (ASX: CSL) reported group sales from North America of 41% in financial year (FY) 2013. This equates to US$2.1 billion in sales.
5. QBE Insurance (ASX: QBE) writes roughly 35% of its gross written premium within its North American operations. This equates to over $6 billion in premiums written.
6. Twenty-First Century Fox (ASX: FOX) earned nearly US$16 billion in revenues in the USA and Canada in FY 2013. This represents 57.6% of total revenues.
Foolish takeaway
While buying into a trend might work in the short-term as momentum plays its part, in the long run it is a growing stream of earnings and a reasonable purchase price that is key. The above businesses all have the potential to benefit from a combination of a weaker Australian dollar and an improving US economy, which should also support their current stock prices.
