The Hottest Investment Idea On Wall Street

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We’ve been looking at a lot of Wall Street predictions and forecasts for 2013, and one big theme is standing out: Go foreign!Goldman Sachs, Bank of America, and Morgan Stanley are all saying that 2013 will be a year in which companies with BRICS/China/Foreign Exposure will outperform.

Click Here For The Most Foreign-Exposed Stocks >
This is a sharp reversal to 2012, when the US economy was the envy of the world, and everyone wanted stocks that were mostly focused domestically.

Bank of America Merrill Lynch’s equity strategy team writes: “The most foreign-exposed stocks are now trading at the steepest discount to their pure domestic counterparts that we have seen in the last decade.”

This chart shows how companies with foreign exposure have dramatically undeperformed the rest.

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In other words, it’s time to buy stocks with foreign exposure, as the uptrend resumes.

In a recent report, BAML’s team offered a list of 50 stocks with the highest foreign sales exposure — stocks that should outperform if global growth exceeds U.S. growth.

We’ve ranked the stocks from least to most exposure to foreign sales. (All YTD returns from The Street)

Rowan Companies PLC

Ticker: RDC

Sector: Energy

YTD: +2.93 per cent

% Foreign Sales: 71 per cent

Rowan provides global offshore contract drilling services and specialises in jack-up rigs, light the one pictured to the right.

Source: Bank of America Merrill Lynch

Western Union Co.

Ticker: WU

Sector: Information Technology

YTD: -30.94 per cent

% Foreign Sales: 71 per cent

Western Union facilitates person-to-person money transfers, offers money orders, and provides a variety of other payment services.

Source: Bank of America Merrill Lynch

Linear Technology Corp.

Ticker: LLTC

Sector: Information Technology

YTD: +10.52 per cent

% Foreign Sales: 71 per cent

Linear Technology designs, manufactures, and markets an extensive line of high performance integrated circuits.

Source: Bank of America Merrill Lynch

Waters Corp.

Ticker: WAT

Sector: Health Care

YTD: +13.63 per cent

% Foreign Sales: 71 per cent

Waters Corp manufactures, sells and services ultra performance liquid chromatography.

Source: Bank of America Merrill Lynch

Autodesk Inc.

Ticker: ADSK

Sector: Information Technology

YTD: +9.23 per cent

% Foreign Sales: 71 per cent

Autodesk produces 3D design software for manufacturing, construction, engineering, entertainment, and related industries.

Source: Bank of America Merrill Lynch

Wynn Resorts Ltd.

Ticker: WYNN

Sector: Consumer Discretionary

YTD: +2.63 per cent

% Foreign Sales: 72 per cent

Wynn Resorts owns, operates, and develops luxury hotels and casinos.

Source: Bank of America Merrill Lynch

TE Connectivity Ltd.

Ticker: TEL

Sector: Information Technology

YTD: +13.89 per cent

% Foreign Sales: 72 per cent

TE offers over 500,000 products which increase communications, power, and data across a variety of applications.

Source: Bank of America Merrill Lynch

Nike Inc. Cl B

Ticker: NKE

Sector: Consumer Discretionary

YTD: +1.23 per cent

% Foreign Sales: 73 per cent

This footwear, apparel, and sports equipment manufacturer earned $5.85 billion in revenues during 3Q 2012.

Source: Bank of America Merrill Lynch

Avery Dennison Corp.

Ticker: AVY

Sector: Industrials

YTD: +15.41 per cent

% Foreign Sales: 73 per cent

Avery Dennison provides labelling and packaging materials, which includes apparel branding, in addition to automotive, graphics, and reflective solutions.

Source: Bank of America Merrill Lynch

Exxon Mobil Corp.

Ticker: XOM

Sector: Energy

YTD: +3.36 per cent

% Foreign Sales: 73 per cent

This multinational oil & gas corporation engages in the exploration, production, and sale of crude oil, natural gas, and other petroleum products.

Source: Bank of America Merrill Lynch

Xilinx Inc.

Ticker: XLNX

Sector: Information Technology

YTD: +8.08 per cent

% Foreign Sales: 73 per cent

Xilinx, a semiconductor manufacturer, offers an array of programmable logic devices.

Source: Bank of America Merrill Lynch

Owens-Illinois Inc.

Ticker: OI

Sector: Materials

YTD: -0.21 per cent

% Foreign Sales: 74 per cent

Owens-Illinois manufactures packaging products and specialises in the production of glass containers.

Source: Bank of America Merrill Lynch

Seagate Technology Inc.

Ticker: STX

Sector: Information Technology

YTD: +53.05 per cent

% Foreign Sales: 74 per cent

Seagate manufactures hard drives and storage solutions, including USB drives.

Source: Bank of America Merrill Lynch

LSI Corp.

Ticker: LSI

Sector: Information Technology

YTD: +12.10 per cent

% Foreign Sales: 75 per cent

LSI Crop designs semiconductors and other software aimed at increasing the storage and networking capabilities of its clients.

Source: Bank of America Merrill Lynch

Chevron Corp.

Ticker: CVX

Sector: Energy

YTD: -0.67 per cent

% Foreign Sales: 75 per cent

Chevron explores, produces, refines, and transports oil & gas and their derivatives.

Source: Bank of America Merrill Lynch

International flavours & Fragrances Inc.

Ticker: IFF

Sector: Materials

YTD: +24.06 per cent

% Foreign Sales: 76 per cent

IFF is committed to the creation of 'unique scent and tase experiences people love.'

Source: Bank of America Merrill Lynch

Molex Inc.

Ticker: MOLX

Sector: Information Technology

YTD: +10.56 per cent

% Foreign Sales: 76 per cent

Molex is a supplier of connectors and interconnect components with a product line of over 100,000.

Source: Bank of America Merrill Lynch

Aflac Inc.

Ticker: AFL

Sector: Financials

YTD: +21.94 per cent

% Foreign Sales: 76 per cent

Aflac, an insurance provider, offers accident, dental, life, vision, and a variety of other insurance products.

Source: Bank of America Merrill Lynch

BorgWarner Inc.

Ticker: BWA

Sector: Consumer Discretionary

YTD: +4.02 per cent

% Foreign Sales: 76 per cent

BorgWarner, known primarily for its line of powertrain products, supplies automotive parts and components to customers in 18 countries.

Source: Bank of America Merrill Lynch

Brown-Forman Corp. Cl B

Ticker: BF.B

Sector: Consumer Staples

YTD: +35.45 per cent

% Foreign Sales: 77 per cent

Brown-Forman produces and markets wine and liquor which sells in over 135 countries.

Source: Bank of America Merrill Lynch

Expeditors International of Washington Inc.

Ticker: EXPD

Sector: Industrials

YTD: -8.64 per cent

% Foreign Sales: 77 per cent

This logistics company offers air and ocean freight consolidation and forwarding, vendor consolidation, customs clearance, cargo insurance, distribution and other value added logistics services which help facilitate international trade.

Source: Bank of America Merrill Lynch

Harman International Industries Inc.

Ticker: HAR

Sector: Consumer Discretionary

YTD: +4.05 per cent

% Foreign Sales: 78 per cent

Harman designs, manufacturers, and markets a wide variety of audio and infotainment products which include loudspeakers, car audio systems, and amplifiers.

Source: Bank of America Merrill Lynch

FMC Technologies Inc.

Ticker: FTI

Sector: Energy

YTD: -21.23 per cent

% Foreign Sales: 78 per cent

FMC Technologies designs, manufactures, and services technology solutions for the energy industry.

Source: Bank of America Merrill Lynch

Colgate-Palmolive Co.

Ticker: CL

Sector: Consumer Staples

YTD: +16.99 per cent

% Foreign Sales: 78 per cent

Colgate-Palmolive offers lines of dental care, personal care, home care, and pet nutrition products.

Source: Bank of America Merrill Lynch

KLA-Tencor Corp.

Ticker: KLAC

Sector: Information Technology

YTD: -5.93 per cent

% Foreign Sales: 79 per cent

KLAC offers process control and yield management solutions for semiconductor manufacturers.

Source: Bank of America Merrill Lynch

Corning Inc.

Ticker: GLW

Sector: Information Technology

YTD: -5.78 per cent

% Foreign Sales: 79 per cent

Corning manufacturers specialty glass and ceramics, many of which have applications in consumer electronics.

Source: Bank of America Merrill Lynch

Microchip Technology Inc.

Ticker: MCHP

Sector: Information Technology

YTD: -16.95 per cent

% Foreign Sales: 79 per cent

Microchip offers both microcontroller and analogue semiconductors.

Source: Bank of America Merrill Lynch

Noble Corp.

Ticker: NE

Sector: Energy

YTD: +13.34 per cent

% Foreign Sales: 81 per cent

Noble Energy is an oil & gas company with projects in the U.S. and overseas.

Source: Bank of America Merrill Lynch

Western Digital Corp.

Ticker: WDC

Sector: Information Technology

YTD: +8.01 per cent

% Foreign Sales: 81 per cent

Western Digital Corp. manufactures both internal and external hard drives as well as media players.

Source: Bank of America Merrill Lynch

Avon Products Inc.

Ticker: AVP

Sector: Consumer Staples

YTD: -20.15 per cent

% Foreign Sales: 81 per cent

Avon manufactures and distributes beauty, skincare, and cosmetic products.

Source: Bank of America Merrill Lynch

Applied Materials Inc.

Ticker: AMAT

Sector: Information Technology

YTD: -0.47 per cent

% Foreign Sales: 81 per cent

Applied Materials provides manufacturing solutions for the semiconductor, flat panel display and solar photovoltaic industries.

Source: Bank of America Merrill Lynch

analogue Devices Inc.

Ticker: ADI

Sector: Information Technology

YTD: +13.47 per cent

% Foreign Sales: 82 per cent

ADI offers analogue, mixed-signal, and digital signal processing integrated circuits which help provide an optimal experience to users of electronics.

Source: Bank of America Merrill Lynch

Altera Corp.

Ticker: ALTR

Sector: Information Technology

YTD: -12.70 per cent

% Foreign Sales: 82 per cent

Altera designs and manufactures semiconductors, specializing in high-density programmable logic devices which can be programmed to perform logic functions in electronic systems like computers.

Source: Bank of America Merrill Lynch

Intel Corp.

Ticker: INTC

Sector: Information Technology

YTD: -19.42 per cent

% Foreign Sales: 84 per cent

Intel Corp is the world's largest semiconductor manufacturer.

Source: Bank of America Merrill Lynch

Micron Technology Inc.

Ticker: MU

Sector: Information Technology

YTD: -5.17 per cent

% Foreign Sales: 84 per cent

Micron Technology produces semiconductors, or in their words, 'develop the technologies that transform what's possible.'

Source: Bank of America Merrill Lynch

Teradyne Inc.

Ticker: TER

Sector: Information Technology

YTD: +14.75 per cent

% Foreign Sales: 85 per cent

Teradyne supplies the equipment used to test semiconductors, wireless products, and other electronic components.

Source: Bank of America Merrill Lynch

SanDisk Corp.

Ticker: SNDK

Sector: Information Technology

YTD: -20.54 per cent

% Foreign Sales: 85 per cent

SanDisk manufactures flash memory cards for imaging, computing, mobile, and gaming devices.

Source: Bank of America Merrill Lynch

NVIDIA Corp.

Ticker: NVDA

Sector: Information Technology

YTD: -13.64 per cent

% Foreign Sales: 85 per cent

NVIDIA, inventor of the GPU, started with visual computing but has since moved into super, mobile and cloud computing.

Source: Bank of America Merrill Lynch

Jabil Circuit Inc.

Ticker: JBL

Sector: Information Technology

YTD: -3.36 per cent

% Foreign Sales: 86 per cent

Jabil provides electronic engineering and manufacturing services.

Source: Bank of America Merrill Lynch

AES Corp.

Ticker: AES

Sector: Utilities

YTD: -9.88 per cent

% Foreign Sales: 87 per cent

AES Corp offers industrial automation solutions, systems integration, and process systems to generate and distribute electricity.

Source: Bank of America Merrill Lynch

Lam Research Corp.

Ticker: LRCX

Sector: Information Technology

YTD: -5.83 per cent

% Foreign Sales: 88 per cent

Lam Research supplies wafer fabrication equipment and services to the worldwide semiconductor industry.

Source: Bank of America Merrill Lynch

Texas Instruments Incorporated

Ticker: TXN

Sector: Information Technology

YTD: +1.72 per cent

% Foreign Sales: 89 per cent

Best known for its line of graphing calculators, TI designs and devlops classroom technology.

Source: Bank of America Merrill Lynch

Diamond Offshore Drilling Inc.

Ticker: DO

Sector: Energy

YTD: +24.50 per cent

% Foreign Sales: 90 per cent

Diamond provides deepwater drilling services for the energy industry.

Source: Bank of America Merrill Lynch

Ensco PLC Cl A

Ticker: ESV

Sector: Energy

YTD: +24.10 per cent

% Foreign Sales: 92 per cent

This multinational oil & gas company moved its headquarters to London in 2010.

Source: Bank of America Merrill Lynch

Advanced Micro Devices Inc.

Ticker: AMD

Sector: Information Technology

YTD: -56.30 per cent

% Foreign Sales: 93 per cent

This semiconductor company manufactures microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.

Source: Bank of America Merrill Lynch

Qualcomm Inc.

Ticker: QCOM

Sector: Information Technology

YTD: +16.31 per cent

% Foreign Sales: 94 per cent

This global semiconductor company has 157 locations worldwide.

Source: Bank of America Merrill Lynch

Broadcom Corp.

Ticker: BRCM

Sector: Information Technology

YTD: +10.29 per cent

% Foreign Sales: 99 per cent

Broadcom offers semiconductor solutions for wired and wireless communications.

Source: Bank of America Merrill Lynch

Philip Morris International Inc.

Ticker: PM

Sector: Consumer Staples

YTD: +14.42 per cent

% Foreign Sales: 100 per cent

Philip Morris manufactures and distributes many brands of cigarettes across the globe.

Source: Bank of America Merrill Lynch

Molson Coors Brewing Co. Cl B

Ticker: TAP

Sector: Consumer Staples

YTD: -4.71 per cent

% Foreign Sales: 100 per cent

This company brews many beers, including the popular Molson Canadian.

Source: Bank of America Merrill Lynch

Coca-Cola Enterprises Inc.

Ticker: CCE

Sector: Consumer Staples

YTD: +20.95 per cent

% Foreign Sales: 100 per cent

This beverage maker and distributor offers not only the popular Coke, but over 100 different drinks.

Source: Bank of America Merrill Lynch

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