19 US stocks with the most exposure to China

As the impact of China’s historic currency devaluation ripples throughout global markets, entire countries remain on edge and opinion on the long-term effects are mixed.

“This devaluation is obviously negative for companies who sell to China,” Credit Suisse’s Andrew Garthwaite said in a note to clients. “Clearly, this is a bigger problem for companies with a transactional mismatch i.e. those which do not produce all their goods locally.”

But even companies that do produce their goods locally face deteriorating local demand from China’s slowing economy.

Garthwaite and his team identified 19 US companies with significant sales exposure to China. There are a number of big name companies on the list — GM, Ford and Apple — but the biggest loser seems to be the semiconductor industry. 11 of the 19 companies are semiconductor firms, which supply small components for a variety of technologies.

Below are the 19 stocks, including Credit Suisse’s rating for each stock and comments on China from the latest earnings call from the company.

Xilinx

Wikimedia Commons

Ticker:
XLNX

Industry:
Semiconductors

Percentage of Total Sales made in China:
24%

Credit Suisse rating:
Neutral

Executive comments: 'While we do expect improvement in the second half of fiscal '16 from increased spending in China, North America and India, the rate of improvement remains difficult to forecast,' said CFO Jon Olson.

Sealed Air Corp

Wikimedia Commons

Ticker:
SEE

Industry:
Non-Paper Container and Packaging

Percentage of Total Sales made in China:
29%

Credit Suisse rating:
Outperform

Executive comments: 'In Asia Pacific, double-digit growth in India and Australia was partially offset by softness in China,' said CEO Jerome Peribere.

Sandisk

Solomon203/Wikimedia

Ticker:
SNDK

Industry:
Storage Devices

Percentage of Total Sales made in China:
31%

Credit Suisse rating:
Neutral

Executive comments: 'We are making progress in strengthening our product portfolio and improving our execution, and we are driving vigorously to regain our overall business momentum,' said CEO Sanjay Mehrotra.

Altera

Wikimedia Commons

Ticker:
ALTR

Industry:
Semiconductors

Percentage of Total Sales made in China:
31%

Credit Suisse rating:
Neutral

Executive comments: 'As I mentioned, the slowdown that we see is across several geographies and it's rare that we do see a slowdown across multiple major geographies,' said CEO John Daane. 'But certainly Japan, U.S. and now China are soft and each is a little bit different.'

General Motors

AP Images

Ticker:
GM

Industry:
Auto and Truck Manufacturing

Percentage of Total Sales made in China:
37%

Credit Suisse rating:
Neutral

Executive comments: 'First, we expect a more volatile market in China as growth moderates. It hasn't changed our long-term view of China,' said CEO Mary Barra. 'We continue to believe that the market will grow.'

Avery Dennison

Avery Dennison

Ticker:
AVY

Industry:
Business Support Supplies

Percentage of Total Sales made in China:
38%

Credit Suisse rating:
Neutral

Executive comments: 'Within China, we've been seeing softening within China,' said COO Mitch Butier. 'We talked about it last quarter, and we're continuing to see that again this quarter.'

Fairchild Semiconductor International

Justin Sullivan

Ticker:
FCS

Industry:
Semiconductors

Percentage of Total Sales made in China:
39%

Credit Suisse rating:
Underperform

Executive comments: 'I mean, there's certainly a higher level of uncertainty we've seen in a long time in China,' said CEO Mark Thompson.

Hexcel

Hexcel

Ticker:
HXL

Industry:
Aerospace and Defence

Percentage of Total Sales made in China:
39%

Credit Suisse rating:
Neutral

Executive comments: 'We remain confident in our operational focus and continuous improvement mindset, while working to position the company for the forecasted growth ahead as we support our customers by investing in technology, capacity expansion, manufacturing innovations, and our people,' said CEO Nick Stanage.

Texas Instruments

Courtesy of Texas Instruments

Ticker:
TXN

Industry:
Semiconductors

Percentage of Total Sales made in China:
44%

Credit Suisse rating:
Neutral

Executive comments: 'I think we have to look at it in the context of the current global environment,' said CFO Kevin March. 'Certainly a lot of negative news flow coming out of Europe and some out of China and so on.'

Intersil

Ticker:
ISIL

Industry:
Semiconductors

Percentage of Total Sales made in China:
51%

Credit Suisse rating:
Neutral

Executive comments: 'China is a sizable market for us. So any perturbations there in the proceeds and demand effects the behaviour of our customers as well as the distribution partners,' said CEO Necip Sayiner. 'So we may very well be seeing an outside reaction to all the economic news there, it's really difficult to parch this out given the number of customers and products that we sell into that market.'

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.