The U.S. greenback has been sturdy this 12 months, and that might imply unhealthy information for firms depending on worldwide gross sales. The greenback index , which measures the U.S. forex’s efficiency towards six different main buying and selling currencies such because the euro and the yen, is up greater than 6% this 12 months. Earlier this month, the index hit its highest stage in roughly twenty years. This greenback energy might hamper sure firms that rely upon enterprise in Europe and Asia, hurting earnings when overseas income is translated again into the U.S. forex. To seek out these shares, CNBC Professional used FactSet to display for U.S. firms whose abroad gross sales are no less than 60% of their whole, and whose income has been declining over the past three months. We then filtered for firms that analysts anticipate to develop total gross sales by 5% or much less for the 12 months. Check out the outcomes beneath. Nike is without doubt one of the names that made the record. Simply 39% of Nike’s gross sales come from the U.S., which means that 61% of its whole income is from overseas. The corporate’s gross sales have additionally fallen by almost 1% within the final three months, and analysts anticipate the shoe and attire maker to develop income by simply 5% this 12 months. Shares of Nike have tumbled this 12 months, dropping greater than 29%, as the corporate navigates provide chain points and rising prices. One other inventory that made the record is Hewlett Packard Enterprise. Greater than two-thirds of the tech firm’s income comes from exterior the U.S., and gross sales have declined barely over the past three months. Analysts protecting the inventory, in the meantime, anticipate Hewlett Packard Enterprise to develop gross sales by simply 2.8% this 12 months. HPE shares, nevertheless, have outperformed the broader market, falling 1.2% this 12 months. The S & P 500, in the meantime, has misplaced 13% in that point. Chemical substances firm DuPont , which has solely 26% of gross sales within the U.S. and 74% from overseas, additionally made the record. The corporate’s income has fallen greater than 23% within the final three months, and analysts anticipate 2022 gross sales to say no by 19%. DuPont shares have dropped almost 20% this 12 months. One other title with a disproportionate reliance on abroad gross sales that popped up on the CNBC Professional display is McDonald’s , the place simply 38% of whole gross sales are home. The corporate’s income has fallen 5.4% over the past three months. Analysts see full-year gross sales rising lower than 1%, and shares of McDonald’s have dropped greater than 6% this 12 months. Robotic know-how firm Teradyne has maybe the best publicity to a stronger greenback, with solely 11% of gross sales coming from the U.S. The corporate — whose inventory is down 34% 12 months to this point — has additionally seen income decline by 1.2% over the past three months, and analysts see 2022 gross sales falling by 7.4%. Different names that made the record are Bio-Rad Laboratories , IPG Photonics , Organon , Otis Worldwide , Aflac , DXC Know-how , Dentsply Sirona and Danaher .
© heardonwallstreet.com