With “rest of world” outperforming US equity markets so far in 2017, and the US Dollar index fading since it peaked on 12/28/16, it should come as no surprise that US companies that generate a large portion of their revenues outside of the US are outperforming their domestic counterparts.
Using our Interactive International Revenues Database, which allows subscribers to pull up the international and domestic revenue exposure for any stock in the Russell 1,000 or S&P 500, we calculated the median performance of stocks based on revenue exposure levels since the US Dollar’s peak on 12/28. The results are shown in the chart below.
The median % change for all stocks in the Russell 1,000 since 12/28 is +6.09%. But stocks that generate more than 80% of their revenues internationally (outside of the US) have seen a median gain of 16%. On the flip side, stocks that generate 80%+ of their revenues domestically are up just 3.44%. That’s a huge difference in performance versus the benchmark. One group has outperformed by more than 10 percentage points (the “Internationals”), while the other group has underperformed by half.