Investors worried about a potential trade war should look at buying shares of Boeing and Raytheon, among other companies, as their trade war exposure is low, according to Fundstrat Global Advisors' Tom Lee.
Boeing and Raytheon's trade war exposure is 35.2 percent each, Fundstrat's founder and head of research said in a note to clients Friday. Steel producer Nucor has the least amount of trade war exposure of the companies listed by Lee, with just a 15 percent exposure.
To determine their exposure to a trade war, Lee looked at their overseas sourcing as a percentage of cost of goods sold and their exports as a percentage of sales. If the sum of the two percentages totaled less than 40 percent, then the company had low exposure to a trade war.
Below is a list of five stocks with low trade war exposure highlighted by Lee, including Raytheon, Nucor and Boeing.