UBS analysts said the stocks in their coverage universe most impacted by trade tensions have underperformed the S&P 500 by about 4.5 percent since trade frictions began to intensify in mid-March.
They identified 34 companies from diverse sectors, including machinery, retail, semiconductors, energy and autos. Companies and industries in sectors affected could see an earnings per share hit more than double the impact on the overall S&P 500 if trade tensions worsen, so therefore, the full brunt of trade escalation is not priced in, they said in a note released earlier this week.
The analysts said semiconductor companies most impacted would include Qualcomm and Micron, because they have the most direct revenue exposure to China. About 65 percent of Qualcomm’s revenues are from China and Micron’s are just over 50 percent.
In retail, companies that import higher amounts of goods from China would be more adversely affected. For instance home furnishings players import anywhere from 30 to 70 percent of their products from China, so Pier 1 is on the list. Consumer electronics retailers source an estimated 50 to 60 percent of their merchandise from China, and that impacts Best Buy.
Companies impacted by tariffs on agriculture also made the list and that includes Deere.
