Which American companies are the most exposed to Europe?

The war in Ukraine is hurting European economies the most, not least because of the continent’s dependence on Russia for oil and natural gas supplies.

Admittedly, European stocks have outperformed those in the United States, with the Stoxx Europe 600 index having fallen 15% since the start of the year, compared to 18% for the S&P 500.

In any case, Bank of America has compiled a list of S&P 500 stocks with the most exposure to Europe, measured by their sales exposure to the continent.

Here are the top 10, in order of sales exposure.

1. Reserve credits (BKNG) – Get the report from Booking Holdings Inc., an online travel agency. Share of sales from Europe: 78%.

2. Estee Lauder (EL) – Get the Estée Lauder Companies Inc. report, a cosmetics company. Share of sales from Europe: 43%.

3. Cooper Co. (COO) – Get the report from Cooper Companies Inc., a medical device company. Share of sales from Europe: 41%

4. DXC Technology (DCX) , an IT services company. Share of sales from Europe: 41%.

5. International flavors and fragrances (IFF) – Get the report from International Flavors & Fragrances Inc., a consumer products company. Share of sales from Europe: 41%.

6. Autodesk (ADSK) – Get the report from Autodesk Inc., a software company. Share of sales from Europe: 40%.

seven. Amcor (CDMA) – Get the Amcor plc report, a packaging company. Share of sales from Europe: 39%.

8. Mondelez (MDLZ) – Get the report from Mondelez International Inc., a food company. Share of sales from Europe: 39%.

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9. Celanese (THIS) – Get the Celanese Corporation report, a chemical company. Share of sales from Europe: 38%.

ten. Fortinet (FTNT) – Get the Fortinet Inc. report., a cybersecurity company. Share of sales from Europe: 38%.

Morningstar’s take on reservations

Morningstar analyst Dan Wasiolek credits the company with a narrow moat and puts the stock’s fair value at $3,000. It recently traded at $1,927.

“As covid-19 and inflation concerns continue to weigh on short-term travel demand, we see Booking showing strong financial health,” he wrote in a May comment.

“Furthermore, we expect Booking’s position as the world’s leading online travel agency to grow over the next decade, driven by a healthy position in Asia-Pacific and continued leadership in Europe.”

It will also benefit from “a growing presence in vacation rentals, restaurant reservations, experiences, flights and payments, all of which are supported by scale of marketing and cutting-edge technology,” Wasiolek said.

Morningstar’s take on Estée Lauder

Morningstar analyst Rebecca Scheuneman gives the company a wide moat and puts the stock’s fair value at $283. It recently traded at $264.

“While the pandemic presents challenges for Estee and her peers, we remain optimistic about her competitive position and long-term strategy,” she wrote in a May comment.

“Estee has made significant investments in omnichannel, marketing and innovations that are helping the company recover quickly from the pandemic and the resulting inflation and supply chain disruptions.”

Additionally, “we believe the business’s growth opportunities should persist over the long term, as emerging markets (one-third of sales) still spend significantly less than developed markets on prestige beauty,” Scheuneman said.

Mary I. Bruner