(Adds the 18 other stock names that JPMorgan suggests avoiding.)
NEW YORK ( TheStreet) -- With the European debt crisis stretching on for two years, JPMorgan (JPM) recommends that investors avoid the shares of U.S. companies that derive above-average levels of revenue on the Old Continent.
No one is sure about the eurozone's destiny, but most economists are certain it's headed into a recession, if it isn't already there. The U.S. economy, meanwhile, is facing a slowdown, though there have been signs that American consumers are spending more.
"The economy has been expanding moderately, notwithstanding some apparent slowing in global growth," the U.S. Federal Open Market Committee said in a statement at the end of its meeting Tuesday.The turmoil in Europe has been reflected in the benchmark Stoxx Europe 600 Index, which is down 13% this year, compared with the S&P 500 Index, which is down only about 1%. According to JPMorgan's equity strategists, 8% of S&P 500 companies' earnings per share come from Europe. JPMorgan did a screen for companies with a large amount of sales in Europe rated "underweight" or "neutral" by the investment bank and with a market value of more than $3 billion. The five stocks that you should absolutely avoid are listed below. (The bank also has a list of shares worth buying.) They're rated "underweight" by JPMorgan and listed by most downside from analysts' price targets. 5. Exxon Mobil (XOM) Company Profile: Global oil company. 2011 Return: minus 10.1% Current Price (Dec. 13): $80.53 JPMorgan's 2012 Price Target/(Downside) Upside: $88/up 9.3%
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