- These 11 companies rely heavily on sales to China, according to Goldman Sachs.
- The companies’ returns have lagged the market since President Donald Trump announced additional tariffs on May 5, and may be subject to further volatility if trade tensions continue.
- Visit MarketsInsider.com for more stories.
President Trump launched a new bout of stock-market volatility on May 5 by announcing additional tariffs on Chinese goods. In particular, stocks with significant revenue exposure to China have come under pressure.
According to a new report from Goldman Sachs, US stocks with exposure to China have significantly lagged the S&P 500 since Trump’s tweet.
In particular, the semiconductor industry has significant exposure to China. The iShares PHLX Semiconductor ETF is down 17% since May 5 while the S&P 500 lost just 5%. Other sectors, such as gaming and commercial lasers, have also been affected.
Markets Insider highlights the 11 companies that have the most sales exposure to China:
Microchip Technology
Duke Health
Ticker: MCHP
Industry: Semiconductors
Market Cap: $19 billion
YTD Return: 13%
Total Revenue: $4 billion
China Exposure (revenue): 30%
Source: Goldman Sachs
A. O. Smith Corp.
The Library of Congress/Flickr
Ticker: AOS
Industry: Boilers and heating systems
Market Cap: $6 billion
YTD Return: 4%
Total Revenue: $3 billion
China Exposure (revenue): 35%
Source: Goldman Sachs
Western Digital
Wikimedia Commons
Ticker: WDC
Industry: Hard-drive manufacturer
Market Cap: $12 billion
YTD Return: 12%
Total Revenue: $19 billion
China Exposure (revenue): 39%
Source: Goldman Sachs
See the rest of the story at Business Insider
See Also:
- An under-the-radar signal is providing crucial hints about the next stock-market crash — and trade-war turmoil could soon have it flashing red
- GOLDMAN SACHS: Buying the stocks most popular with hedge funds has been a market-crushing strategy. Here are the 17 they love the most.
- An investor overseeing $17 billion explains her uncommon tactics for finding the market’s biggest cash cows. Here’s how her approach can protect you from a crash.
Source: Business Insider – areddy@businessinsider.com (Arjun Reddy)