I think this chart says it all…
Performance of the Australian dollar versus performance of selected stocks with USD exposure. Source: Google Finance.
…the benefits of owning stocks in companies with significant U.S. dollar exposure over the past six months are plain to see.
As can be seen from the chart above, declines in the Australian-US dollar exchange rate have, unsurprisingly, coincided with the significant share price appreciation of prominent Australian companies.
However with some financial commentators and leading economists tipping the Australian dollar to fall further in 2015, these next four stocks may be capable of even more share price appreciation in the future.
- ResMed Inc. (CHESS) (ASX: RMD) is a global manufacturer of medical devices for sufferers of sleep apnea and other respiratory disorders. Despite a recent surge in share price, the market for its products is large and growing. For long-term investors, this one looks like a real winner.
- Westfield Corp Ltd (ASX: WFD) is the global arm of shopping centre powerhouse, Westfield. After spinning off its operations here in Australia and New Zealand, it is now increasingly leveraged to foreign earnings. In particular, from the world's largest consumer goods market, the USA.
- Computershare Limited (ASX: CPU) is the middle man between shareholders and the companies they own. It also provides an array of services to companies operating in multiple jurisdictions.
- Macquarie Group Ltd (ASX: MQG) is perhaps more cyclical than the three aforementioned companies. However Australia's leading investment bank has exposure to a rising US dollar and stronger global share markets. Around 65% of the bank's income is derived offshore.
Of the above four companies, I believe Computershare has the best prospects in the medium term (three to five years), whilst ResMed looks a compelling investment over the ultra-long term (10 years or more) given the multiple tailwinds at its back.
