MENU

For US exposure, try these 6 stocks

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.

Want dividends?

Most of the stocks above have solid growth potential, which leads them to retain their earnings rather than pay high dividends. Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

Motley Fool contributor Tim McArthur owns shares in QBE Insurance and Twenty-First Century Fox.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.