Goldmman Sachs says investors should stay away from these 20 companies that will be hit the hardest by rising tariffs and interest rates.
Fears over escalating trade tensions with China and rising US interest rates helped trigger a brutal stock-market sell-off that caused the S&P 500 to lose as much as 7% in October, and both of those issues are showing no sign of slowing down.
President Donald Trump on Wednesday took his latest shot at China, announcing that he is seeking to pull the US out of the Universal Postal Union, which allows Chinese producers to ship items to the US at significantly low rates even compared to some US domestic shipping rates.
Meanwhile, the Federal Reserve's minutes from its September meeting were released on Thursday, showing that policymakers broadly agreed this year's fourth interest-rate hike is coming in December. The Fed's tightening has strengthened the dollar, which has made it more expensive for companies to bring overseas revenue back into the US.
But you don't have to panic. Armed with the right information, you can steer clear of those firms that will be hit the hardest by the stronger dollar and Trump's tariffs. That means identifying and staying away from companies that have high revenue exposure to China.
Goldman Sachs is here to help. The banks maintains an index of US companies that get a large percentage of their sales from China, and filtered 20 stocks it says should take biggest hit in the event of a prolonged trade war.
Here are 20 companies that Goldman listed, in an order from sales least exposed to China to the most.
20. Apple
Ticker: AAPL
Industry: Technologies
Market cap: $1.06 trillion
% of China sales: 20%
Source: Goldman Sachs
19. Avery Dennison
Ticker: AVY
Market cap: $8.68 billion
% of US sales: 20%
Source: Goldman Sachs
18. Agilent Technologies
Ticker: A
Industry: Healthcare
Market cap: $21.19 billion
% of US sales: 20%
Source: Goldman Sachs
17. Corning
Ticker: GLW
Industry: Technology
Market cap: $26.2 billion
% of US sales: 22%
Source: Goldman Sachs
16. Intel
Ticker: INTC
Industry: Technology
Market cap: $211.26 billion
% of US sales: 24%
Source: Goldman Sachs
15. Xilinx
Ticker: XLNX
Industry: Technology
Market cap: $19.77 billion
% of US sales: 26%
Source: Goldman Sachs
14. Aptiv
Ticker: APTV
Industry: Automobile
Market cap: $21.53 billion
% of US sales: 28%
Source: Goldman Sachs
13. Amphenol
Ticker: APH
Industry: Technology
Market cap: $25.4 billion
% of US sales: 29%
Source: Goldman Sachs
12. Microchip Technology
Ticker: MCHP
Industry: Technology
Market cap: $16.09 billion
% of US sales: 30%
Source: Goldman Sachs
11. Advanced Micro Devices
Ticker: AMD
Industry: Technology
Market cap: $26.52 billion
% of US sales: 33%
Source: Goldman Sachs
10. A.O.Smith
Ticker: AOS
Industry: Industrials
Market cap: $6.85 billion
% of US sales: 35%
Source: Goldman Sachs
9. Western Digital
Ticker: WDC
Industry: Technology
Market cap: $16.21 billion
% of US sales: 39%
Source: Goldman Sachs
8. IPG Photonics
Ticker: IPGP
Industry: Industrials
Market cap: $7.48 billion
% of US sales: 44%
Source: Goldman Sachs
7. Texas Instruments
Ticker: TXN
Industry: Technology
Market cap: $97.95 billion
% of US sales: 44%
Source: Goldman Sachs
6. Micron Technology
Ticker: MU
Industry: Technology
Market cap: $47.8 billion
% of US sales: 51%
Source: Goldman Sachs
5. Qorvo
Ticker: QRVO
Industry: Technology
Market cap: $9.4 billion
% of US sales: 52%
Source: Goldman Sachs
4. Broadcom
Ticker: AVGO
Industry: Technology
Market cap: $98.53 billion
% of US sales: 54%
Source: Goldman Sachs
3. Qualcomm
Ticker: QCOM
Industry: Technology
Market cap: $96.42 billion
% of US sales: 65%
Source: Goldman Sachs
2. Wynn Resorts
Ticker: WYNN
Industry: Consumer service
Market cap: $12.67 billion
% of US sales: 73%
Source: Goldman Sachs
1. Skyworks Solutions
Ticker: SWKS
Industry: Technology
Market cap: $15.69 billion
% of US sales: 83%
Source: Goldman Sachs
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