44 Companies That Could Get Crushed If The Government Cuts Spending

cliff

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The threat of the “fiscal cliff” remains one of the most important events weighing on U.S. markets To recap, if Congress does nothing before the end of the year, a series of tax cuts and spending programs will expire and combine to shrink GDP by up to 4 per cent, according to Goldman Sachs analysts.

While we’d all suffer, some companies would get hit more than others.

The last time we had a major debate on government spending levels — the debt ceiling talks of 2011 — companies with heavy exposure to government significantly underperformed, Goldman says.

Earlier this year, Goldman put together the list of U.S. companies whose revenues rely most on the government. 

We grabbed the 44 whose revenues are 50 per cent or more taxpayer dependent.

AMERIGROUP Corp.

Ticker: AGP

Sales exposure to government: 100%

Description: Health care providers and services

Source: Goldman Sachs Research

Centene Corp.

Ticker: CNC

Sales exposure to government: 100%

Description: Health care providers and services

Source: Goldman Sachs Research

Molina Healthcare Inc.

Ticker: MOH

Sales exposure to government: 100%

Description: Health care providers and services

Source: Goldman Sachs Research

WellCare Health Plans Inc.

Ticker: WCG

Sales exposure to government: 93%

Description: Health care providers and services

Source: Goldman Sachs Research

Huntington Ingalls Industries Inc.

Ticker: HII

Sales exposure to government: 99%

Description: Shipbuilder

Source: Goldman Sachs Research

Lockheed Martin Corp.

Ticker: LMT

Sales exposure to government: 97%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

Granite Construction Inc.

Ticker: GVA

Sales exposure to government: 95%

Description: Contracting and construction

Source: Goldman Sachs Research

Northrop Grumman Corp.

Ticker: NOC

Sales exposure to government: 90%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

L-3 Communications

Ticker: LLL

Sales exposure to government: 90%

Description: Aerospace equipment developer

Source: Goldman Sachs Research

Universal American Corp.

Ticker: UAM

Sales exposure to government: 90%

Description: Health care providers and services

Source: Goldman Sachs Research

Raytheon

Ticker: RTN

Sales exposure to government: 86%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

AeroVironment Inc.

Ticker: AVAV

Sales exposure to government: 85%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

Harris Corp.

Ticker: HRS

Sales exposure to government: 82%

Description: Communication and IT services provider

Source: Goldman Sachs Research

Alliant Techsystems

Ticker: ATK

Sales exposure to government: 82%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

Humana Inc.

Ticker: HUM

Sales exposure to government: 81%

Description: Health care providers and services

Source: Goldman Sachs Research

Illumina Inc.

Ticker: ILMN

Sales exposure to government: 80%

Description: Life sciences tools and services

Source: Goldman Sachs Research

General Dynamics

Ticker: GD

Sales exposure to government: 80%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

FLIR Systems Inc.

Ticker: FLIR

Sales exposure to government: 78%

Description: Thermal imaging systems developer

Source: Goldman Sachs Research

Edwards Life Sciences

Ticker: EW

Sales exposure to government: 72%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Bruker Corp.

Ticker: BRKR

Sales exposure to government: 69%

Description: Life sciences tools and services

Source: Goldman Sachs Research

Stryker Corp.

Ticker: SYK

Sales exposure to government: 69%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Tetra Tech Inc.

Ticker: TTEK

Sales exposure to government: 69%

Description: Natural resource services and consulting

Source: Goldman Sachs Research

Becton Dickinson & Co.

Ticker: BDX

Sales exposure to government: 68%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Zimmer Holdings Inc.

Ticker: ZMH

Sales exposure to government: 68%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

URS Corp.

Ticker: URS

Sales exposure to government: 68%

Description: Power generator maintenance

Source: Goldman Sachs Research

St. Jude Medical Inc.

Ticker: STJ

Sales exposure to government: 68%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Baxter International

Ticker: BAX

Sales exposure to government: 68%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Boston Scientific Corp.

Ticker: BSX

Sales exposure to government: 68%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

DaVita Inc.

Ticker: DVA

Sales exposure to government: 66%

Description: Health care providers and services

Source: Goldman Sachs Research

Covidien

Ticker: COV

Sales exposure to government: 65%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Magellan Health Services Inc.

Ticker: MGLN

Sales exposure to government: 65%

Description: Health care providers and services

Source: Goldman Sachs Research

Motorola

Ticker: MSI

Sales exposure to government: 65%

Description: Communication and IT service provider

Source: Goldman Sachs Research

Hospira Inc.

Ticker: HSP

Sales exposure to government: 64%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

Medtronic

Ticker: MDT

Sales exposure to government: 63%

Description: Health care equipment and supplies

Source: Goldman Sachs Research

AECOM Technology Corp.

Ticker: ACM

Sales exposure to government: 62%

Description: Infrastructure maintenance

Source: Goldman Sachs Research

Bombardier

Ticker: BBD

Sales exposure to government: 53%

Description: Aerospace equipment developer

Source: Goldman Sachs Research

Omnicare Inc.

Ticker: OCR

Sales exposure to government: 53%

Description: Health care providers and services

Source: Goldman Sachs Research

HCA Holdings Inc.

Ticker: HCA

Sales exposure to government: 53%

Description: Health care providers and services

Source: Goldman Sachs Research

Clean Harbors

Ticker: CLH

Sales exposure to government: 50%

Description: Hazmat services

Source: Goldman Sachs Research

Republic Services

Ticker: RSG

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

Waste Connections

Ticker: WCN

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

Waste Management

Ticker: WM

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

Health Net Inc.

Ticker: HNT

Sales exposure to government: 50%

Description: Health care providers and services

Source: Goldman Sachs Research

Affymetrix Inc.

Ticker: BRKR

Sales exposure to government: 70%

Description: Life sciences tools and services

Source: Goldman Sachs Research

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