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P&G, Colgate Most Exposed to Euro Risk -UBS

Stocks recovering today from yesterday's 2 percent-plus slide even with the Euro falling to a fresh one-year low as U.S. investors brushed off concerns about a credit contagion in the Eurozone spreading out of control. Some analysts are cautioning however that while Greece may be bailed out the fallout could hit some of the names right here in U.S. portfolios.

“Within our coverage, P&G and Colgate source the greatest percent of sales (18 percent and 17 percent respectively) from the Euro,” wrote Nik Modi, UBS household products analyst, in a note to clients today. “Sustained Euro weakness bears watching and could weigh on EPS upside over the coming quarters.”

It’s a simple equation. Procter & Gamble and Colgate sell commoditized products like toothpaste and toilet paper. If the dollar strengthens against theEuro their sales are worth less when they bring them back to this country. Worse, it could raise their costs and squeeze their margins.

Clorox has the least exposure to the Euro-zone, according to UBS, while Avon Products shares may actually benefit because of their high sales in Russia, Poland and the Ukraine. Who would have thought exposure to Eastern Europe would be a good thing?

As we first told you yesterday on the Halftime Report, outside of the household products industry, Standard & Poor’s ranked all the companies in the S&P 500 by their European exposure. Flowserve, Paccar , and Owens-Illinois topped the list with over 40 percent of their sales to the region. Note that S&P used the latest figures available from 2008.

The bottom line for investors is that even if Greece or Portugal can be bailed out, the costs to do so may weight on the currency and hurt our multinationals here at home.

With reporting by Jennifer Dwork.

For the best market insight, catch 'Fast Money' each night at 5pm ET on CNBC.

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Trader disclosure: On May 5, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (C) May Calls; Terranova Owns (PFE), (SWN), (XCO), (TER); Terranova Is Long Gold June 2010 Futures; Terranova Is Short (CMA); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (AEO), (AEO) Calls; Finerman's Firm Owns (BAC), (BAC) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm Owns (BP) Calls; Finerman Owns (GOOG); Finerman Owns (GS) Calls; Finerman's Firm Owns (IBM); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman Owns (WFC) Preferred; Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (LPX) Call Spread; Najarian Owns (MS); Najarian Owns (PFE); Najarian Owns (YHOO) Call Spread; Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Levy Owns (GS)

For Joe Terranova:
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Brian Kelly
Kanundrum Capital Is Long U.S. Dollars
Kanundrum Capital Owns (TLT)
Kanundrum Capital Is Long (GLD)
Kanundrum Captial Owns (GFI)
Kanundrum Capital Is Long (AUY)
Kanundrum Capital Is Long (GFI)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Pound
Kanundrum Capital Is Short Franc
Kanundrum Capital Is Short (USO)
Kanundrum Capital Is Short (RSX)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short (DE)
Kanundrum Capital Is Short (NUE)
Kanundrum Capital Is Short (SU)
Kanundrum Capital Is Short (EXPE)
Kanundrum Capital Is Short (XOM)
Kanundrum Capital Is Short (HES)
Kanundrum Captial Is Short (CLF)
Kanundrum Captial Is Short (TSL)
Kanundrum Captial Is Short (HBC)
Kanundrum Captial Is Short (BCS)
Kanundrum Captial Is Short (DB)
Kanundrum Captial Is Short (NUE)
Kanundrum Captial Is Short (IBM)

For Anthony Scaramucci:
Scaramucci Owns (AAPL), Skybridge Owns (AAPL)
Scaramucci Owns (BAC), Skybridge Owns (BAC)
Scaramucci Owns (C), Skybridge Owns (C)
Scaramucci Owns (GOOG), Skybridge Owns (GOOG)
Scaramucci Owns (GS), Skybridge Owns (GS)
Scaramucci Owns (JPM), Skybridge Owns (JPM)
Scaramucci Is Long U.S. Dollar, Skybridge Is Long U.S. Dollar

For Hilary Kramer
A&G Capital Owns (PMI)
A&G Capital Owns (MTG)
A&G Capital Owns (XCO)
A&G Capital Owns (GS)
A&G Capital Owns (MS)
A&G Capital Owns (QQQQ)
Hilary Kramer Is A Client Of Goldman Sachs

For Jared Levy
Peak6 Investments Is Long And Has An Options Position In (GS)
Peak6 Investments Is Long And Has An Options Position In (JPM)
Peak6 Investments Is Long And Has An Options Position In (C)
Peak6 Investments Is Long And Has An Options Position In (BAC)
Peak6 Investments Is Long And Has An Options Position In (WFC)
Peak6 Investments Is Long And Has An Options Position In (AA)
Peak6 Investments Is Long And Has An Options Position In (USO)
Peak6 Investments Is Long And Has An Options Position In (OIH)
Peak6 Investments Is Long And Has An Options Position In (COP)
Peak6 Investments Is Long And Has An Options Position In (PMI)
Peak6 Investments Is Long And Has An Options Position In (BP)
Peak6 Investments Is Long And Has An Options Position In (AAPL)
Peak6 Investments Is Short And Has An Options Position In (MS)
Peak6 Investments Is Short And Has An Options Position In (XLF)
Peak6 Investments Is Short And Has An Options Position In (FCX)
Peak6 Investments Is Short And Has An Options Position In (SPY)
Peak6 Investments Is Short And Has An Options Position In (QQQQ)
Peak6 Investments Is Short And Has An Options Position In (XOM)
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Peak6 Investments Is Short And Has An Options Position In (MTG)
Peak6 Investments Is Short And Has An Options Position In (RDN)
Peak6 Investments Is Short And Has An Options Position In (RIG)

For Mike Khouw
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For Stephen Weiss
Weiss Owns (HD), (MWA), (BP), (MRK), (HBAN), (NMM), (FRO), (WCBO)

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