The European Central Bank lowered interest rates Thursday, and for investors particularly exposed to the eurozone, there are five specific stocks that will be very sensitive to economic changes in the block.
The ECB announced it implemented stimulus measures Thursday morning, an indication the quantitative easing program it had initiated after the financial crisis may soon be back in swing. EU stocks rose, as did all three major indices in the U.S.
But there are five U.S. stocks in particular that benefit greatly from better economic conditions in Europe, as they see a large potion of their revenue streams from the EU:
- McDonald's (MCD) - Get Report (34% revenue from EU) + 1.58%
- PVH (PVH) - Get Report (34% revenue from EU) +.52%
- Fiat-Chrysler (FCAU) - Get Report (18% revenue from EU) +1.89%
- DuPont de Nemours (DD) - Get Report (19% revenue from EU) Flat-to-down
- Honeywell (HON) - Get Report (24% revenue EU) -1.29%
There are other notable U.S. companies that see a significant portion of revenue from the EU, but some of these companies are less cyclical, and less impacted by changing economic conditions in the EU. These include Kraft-Heinz (KHC) - Get Report , which is in the middle of turning around a failed strategy, and Coca-Cola (KO) - Get Report .
The five above companies usually experience stronger tailwinds and harsher headwinds when consumer and business spending gets a boost or a hit.