Why These Top Global Stocks Are So Attractive
By George Leong for Daily Gains Letter |
One of the most common traits I find in successful companies is that they often have a multinational presence. That’s not to say that domestic-only companies are not successful, but for real growth, many of the top S&P 500 companies are global, based on my stock analysis.
Whether it’s in the industrial, technology, financial, aerospace, or healthcare sectors, the commonality is the global exposure that many of the world’s top companies all exhibit.
In fact, the failure to capitalize on foreign markets can really limit a company’s growth, according to my stock analysis.
There are only two avenues to drive revenues: A company can increase its price to the consumer, but this doesn’t always come across as being prudent. Or a second and more viable way is to expand outside to foreign markets, as my stock analysis suggests.
Companies can expand nationwide or internationally like many of the world’s multinational companies. Just take a look around and see how many American companies are found outside of our borders and spread across Europe, Asia, and Latin America. China is a perfect example of where companies go to seek added growth, as my stock analysis indicates.
Technology companies like Microsoft Corporation (NASDAQ/MSFT), Google Inc. (NASDAQ/GOOG), Facebook, Inc. (NASDAQ/FB), and Apple Inc. (NASDAQ/AAPL), to name just a few, all have a major global presence.
An example of moving to the global sphere too late is Target Corporation (NYSE/TGT), with its first foreign foray into Canada. It has been a bust so far, given that rival Wal-Mart Stores Inc. (NYSE/WMT) has been in Canada since 1994, being the market leader in the country and a household name.
Starbucks Corporation (NASDAQ/SBUX) really took off after it expanded outside of U.S. borders to China, Asia, Europe, and Latin America.
McDonalds Corporation (NYSE/MCD) is also now a global powerhouse and one of the most recognizable brands worldwide.
In the home supplies sector, The Home Depot, Inc. (NYSE/HD) expanded into Canada in 1994, which was followed by Lowes Companies, Inc. (NYSE/LOW) in 2007.
The reality is that expansion is what companies need to do in order to grow and become much bigger companies, according to my stock analysis.
Maintaining a market only within our borders means limiting your potential market to the 330 million people in the United States, while ignoring the 500 million people in the eurozone and the 2.4 billion people spread across China and India, as my stock analysis indicates.
The bottom-line: looking for companies with expansive global coverage makes investment sense and is an excellent investment strategy when evaluating stocks, based on my stock analysis.
Tags: Apple, China, Google, investment strategy, S&P 500, stock analysis, Wal-Mart Stores
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