Given the country''s war on Ukraine, the United States and its allies have pushed the Russian economy. You may want to avoid stocks exposed to Russia. Or you might want to do it for moral reasons.
There might be no need to do anything, however, because businesses in the United States do not do much of business with Russia.
According to Bank of America analysts, the direct exposure of the S&P 500 companies to Russia is de minimis, which represents just about 0.1 percent of total sales.
There are only ten firms that disclose sales exposure to Russia, all of whom have less than 10% sales exposure to the country.
"We see a little direct impact from Russia''s invasion of Ukraine and sanctions on Russia, but with a greater indirect impact from oil and Europe."
The following are the ten companies listed below.
Get Philip Morris International Inc Report, the tobacco firm. Russia''s sales exposure: 8%.
Get Mondelez International Inc. Report, the largest food company, from Mondelez (MDLZ)
Get PepsiCo Inc. Report, the Food and Drink Trend. 5%.
Get Mohawk Industries Inc. Report, a flooring products manufacturer. 4%.
Howmet Aerospace (HWM) - Get Howmet Aerospace Inc. Report, an aerospace parts manufacturer. 4%.
Consumer Products Manufacturer: Colgate-Palmolive (CL)
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Procter & Gamble (PG) - The Consumer Products Report, the Procter & Gamble Company (The) Report
Get Brown Forman Inc''s Class B Report, the alcoholic beverage company, at the Burger King.
Get Coca-Cola Company (The) Report, the iconic beverage company, 2%.
Estee Lauder (EL) - Get Estee Lauder Companies Inc. (The) Report, the beauty products company. 1%.
Morningstars Take on Philip Morris...
Philip Gorham, a Morningstar analyst, has assigned the company a large moat and puts the stock''s fair value at $103, which has recently traded at $104.68.
In a May commentary, Philip Morris and Swedish Match (SWMAY) have confirmed that discussions on a possible acquisition of Swedish Match are ongoing.
We suspect there is little wiggle room for a transaction to generate value at a rate above the Swedish Match''s market cap of 123 billion Swedish kronor at the closing of its business on May 9.
"We believe that Philip Morris'' access to the US market might be significant and financial benefits.
...and on Mondelez
Erin Lash, a Morningstar analyst, gives the company a deep moat and puts fair value for the company at $63. It recently traded at $62.95.
CEO Dirk Van de Put endorsed a revamped strategy to spur profitable growth at Mondelez, which focuses on expanding its distribution, boosting investment behind local and global brands, and increasing innovation flexibility.
This has been a fun task, with 4% organic sales growth on average since fiscal 2018 and [1.1 percent] points of adjusted operating margins increasing to nearly 17 percent in fiscal 2021.
The author of this book owns shares of PepsiCo, Procter & Gamble, and Coca-Cola.