U.S. companies with the highest percentage of sales to China have outperformed WTD
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China’s CSI 300 stock index (ASHR) is up 10.8% week-to-date, and up 19% just in the past five days after China announced fiscal stimulus plans, and rate requirements cuts.
Some U.S. stocks are seeing a clear positive catalyst, with the S&P 500 excluding Technology (NYSEARCA:SPXT) companies with the highest percentage sales to China (about 29% sales to China on average) averaging a strong 9.1% week-to-date return, Wells Fargo equity analyst Christopher P. Harvey said in a note.
Here are the companies:
- Las Vegas Sands (LVS) – % Sales to China: 63%; WTD return: 15.3%
- Wynn Resorts Ltd. (WYNN) – % Sales to China: 47%; WTD return: 14.2%
- Albemarle Corp. (ALB) – % Sales to China: 30%; WTD return: 10.6%
- Estee Lauder (EL) – % Sales to China: 26%; WTD return: 18.6%
- Tesla Inc. (TSLA) – % Sales to China: 22%; WTD return: 6.7%
- A. O. Smith Corp. (AOS) – % Sales to China: 21%; WTD return: 7.7%
- Borgwarner Inc. (BWA) – % Sales to China: 21%; WTD return: 7.2%
- Agilent Tech Inc. (A) – % Sales to China: 20%; WTD return: 4.7%
- MGM Resorts International (MGM) – % Sales to China: 20%; WTD return: 2.7%
- Aptiv Plc (APTV) – % Sales to China: 20%; WTD return: 3.5%
In addition, the top 10 technology (XLK) companies with the highest percentage of sales to China also outperformed, with an average of 5.8% week-to-date return. These companies “are often merely manufacturing pass-throughs,” said Harvey.
Here are the companies:
- QUALCOMM Inc. (QCOM) – % Sales to China: 62%; Period return: 2.2%
- Monolithic Power (MPWR) – % Sales to China: 51%; Period return: 6%
- KLA Corp. (KLAC) – % Sales to China: 43%; Period return: 6%
- LAM Research (LRCX) – % Sales to China: 42%; Period return: 9.6%
- NXP Semiconductors (NXPI) – % Sales to China: 33%; Period return: 4.5%
- Corning Inc. (GLW) – % Sales to China: 33%; Period return: 1.8%
- Broadcom Inc. (AVGO) – % Sales to China: 32%; Period return: 4.1%
- Intel Corp. (INTC) – % Sales to China: 27%; Period return: 9.5%
- Applied Material (AMAT) – % Sales to China: 27%; Period return: 9.1%
- ON Semiconductor Corp. (ON) – % Sales to China: 26%; Period return: 5.4%