With the AUD/USD pair near 2-year highs, now could be an opportune time to pick up some great ASX-listed companies that have significant earnings in US dollars. Below are five stocks I believe have come under some recent price pressure due to the strength of the Aussie dollar:
Amcor Limited (ASX: AMC): Amcor is a global packaging group with flexible packaging and rigid plastics operations across North and Latin America, Europe and Asia. It reports in USD with US earnings contributing around 35-40% to Net Profit After Tax. It recently reported higher earnings for FY2017 and has flagged further growth for the year ahead.
Aristocrat Leisure Limited (ASX: ALL): This increasingly diverse gaming solutions provider (think "pokie machines" and digital gambling) has been on a tear in 2017. Its share price has risen more than 30% on the back of strong growth in revenue and earnings. North America is Aristocrat's largest revenue-earning region, accounting for around 40% of total revenue. Aristocrat is currently in a growth phase and recently acquired Israel-headquartered social gaming company Plarium for $US500m as it looks to expand its digital market.
Orora Ltd (ASX: ORA): A diversified packager, Orora was spun out of Amcor in December 2013 and has performed well in such a short time in sending its share price up more than 150%. Orora enjoyed double-digit earnings growth in FY2016 whilst managing to reduce leverage. The company has significant exposure in North America and management has demonstrated an appetite for further acquisition in the region.
Ansell Limited (ASX: ANN): This protective glove producer is streamlining operations following the May-announced sale of its Sexual Wellness division for $US600m. Proceeds from the sale will be used to improve manufacturing, reduce costs, and buy back shares. Ansell reports in USD and the North America region accounts for almost 50% of total revenue.
MFF Capital Investments Limited (ASX: MFF): A Listed Investment Company (LIC) formerly of the Magellan Financial Group Ltd (ASX: MFG) stable, MFF primarily invests in large, US-listed stocks. The LIC's portfolio appreciated more than 20% in FY2017 and its largest holdings include Visa, Home Depot and Mastercard. Magellan remains a major shareholder in MFF, as does Managing Director and Portfolio Manager Chris Mackay.
Foolish takeaway
Short-term strength in the AUD/USD pair could represent a buying opportunity for great companies at a decent price. Foolish investors with a long-term perspective should always be ready and waiting to take advantage of market overreactions.
