UBS: These 14 Companies Will Shield You From The Europocalypse


It’s hard to avoid exposure to Europe if you’re in the stock markets.

UBS’s US Equity Strategy team led by Jonathan Golub recently published a list of internationally exposed stockst that should outperform the market during periods of European weakness.

These companies have high foreign sales, and low European sensitivity. Here’s how UBS calculates sensitivity: “the percentage of times it has outperformed the market in periods of European strength and the percentage of times it has underperformed the market in periods of European weakness. The sum of these two percentages is the Sensitivity Score.”

Note: UBS does not refer to the euro crisis as ‘Euro-pocalypse’.  They describe this screen as “High Foreign Sales and Low European Sensitivity – Top Stocks by Sector”

Abbott Laboratories

Ticker: ABT

Foreign Sales %: 58.8

European Sensitivity Score: 0.48

Abbot Labs is a Chicago based pharmaceutical company. The company focuses on global pharmaceuticals, nutritional and medical products, as well as diagnostic and cardiovascular devices.

Source: UBS

American Tower Corp

Ticker: AMT

Foreign Sales %: 26.3

European Sensitivity Score: 0.77

American Tower Corp is a holding company that owns and operates communications sites. It leases space on its towers to a variety of broadcast and wireless providers.

Source: UBS

Ball Corp.

Ticker: BLL

Foreign Sales %: 38.1

European Sensitivity Score: 0.87

Ball Corporation produces a variety of metal packaging for food, beverages, and other products in addition to aerospace systems.

Source: UBS

BMC Software Inc.

Ticker: BMC

Foreign Sales %: 48.5

European Sensitivity Score: 0.71

BMC Software develops system and service management software. It is headquartered in Houston, Texas.

Source: UBS

Brown-Forman Corp.

Ticker: BF-B

Foreign Sales %: 55.5

European Sensitivity Score: 0.77

Brown-Forman Corp. manufactures and markets alcoholic beverages including Jack Daniels and Southern Comfort.

Source: UBS

The Chubb Corporation

Ticker: CB

Foreign Sales %: 25.9

European Sensitivity Score: 0.79

The Chubb Corporation is a holding company that provides various insurance products through its subsidiaries.

Source: UBS

Colgate-Palmolive Co.

Ticker: CL

Foreign Sales %: 78.5

European Sensitivity Score: 0.62

Colgate-Palmolive manufactures a variety 0f consumer products worldwide, including oral care and household cleaning products.

Source: UBS

International Business Machines Corp.

Ticker: IBM

Foreign Sales %: 65.4

European Sensitivity Score: 0.78

IBM provides IT products and services worldwide, headquartered in Armonk, New York.

Source: UBS

Johnson and Johnson

Ticker: JNJ

Foreign Sales %: 55.5

European Sensitivity Score: 0.55

Johnson and Johnson produces various consumer healthcare products and over the counter pharmaceuticals. It is headquartered in New Brunswick, New Jersey.

Source: UBS

McDonald's Corp.

Ticker: MCD

Foreign Sales %: 68.4

European Sensitivity Score: 0.55

McDonald's franchises and operates fast food restaurants throughout the world.

Source: UBS

Raytheon Co.

Ticker: RTN

Foreign Sales %: 24.8

European Sensitivity Score: 0.76

Raytheon is a defence contractor and the world's largest producer of guided missiles. It is headquartered in Waltham, Massachusetts

Source: UBS

Spectra Energy Corp.

Ticker: SE

Foreign Sales %: 67.2

European Sensitivity Score: 0.85

Spectra Energy owns and operates natural gas assets throughout North America.

Source: UBS

Stericycle Inc.

Ticker: SRCL

Foreign Sales %: 27.7

European Sensitivity Score: 0.79

Stericycle provides waste management services to institutions. It is headquartered in Lake Forest, Illinois.

Source: UBS

Yum! Brands Inc.

Ticker: YUM

Foreign Sales %: 70

European Sensitivity Score: 0.67

Yum Brands operates and franchises fast food restaurants including KFC and Taco Bell.

Source: UBS

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