These stocks could rise as Russia-Ukraine war causes U.S. companies, investors to rethink globalization trend

Published Sun, Mar 6 20229:10 AM EST

A worsening crisis in the Russia-Ukraine war front, as well as growing concern over hostilities in China and Taiwan, is spurring U.S. companies and investors to reconsider the trend toward globalization. Investors are giving deeper thought to the effects of geopolitical risks to supply chains. Already, the crisis in Ukraine has sent commodities prices soaring , caused Washington to raise economic sanctions , and spooked a number of U.S. companies into cutting ties with Russia . Further, there are building tensions between China and Taiwan that could further disrupt global manufacturing, particularly in semiconductors. Indeed, Beijing has repeatedly called for a reunification with democratically ruled Taipei. Amid the geopolitical tensions, there's still the backdrop of global supply chain disruption and higher prices. During the pandemic, the dearth of domestic manufacturing had Americans scrambling for necessities and underscored their reliance on offshore companies. In turn, this helped contribute to higher costs on consumer goods. Looking closer to home To that end, certain U.S. companies may benefit if rising hostilities abroad spur the reshoring of production at home, according to Bank of America. "Russia/Ukraine conflict and risks of China/Taiwan conflict further corroborate the notion that peak globalization is behind us," said Savita Subramanian, the firm's head of U.S. equity and quantitative strategy. The bank issued a list of stocks with little exposure to foreign markets and that would benefit from the reshoring of manufacturing chains. Here are 10 companies that made the list. Construction and materials companies stand to benefit from a return to domestic manufacturing. Bank of America highlighted building materials company Martin Marietta Materials and construction materials producer Vulcan Materials . Shares of both companies are down more than 14% for the year. Paint and coating manufacturer Sherwin-Williams also made the list, even as the company grapples with strong demand amid higher material costs . Shares are off about 26% in 2022. Several U.S.-based real estate investment trusts will also be beneficiaries of reshoring, analysts said. AvalonBay Communities , a REIT that invests in apartments, is down 2% year to date. Ventas , a health-care facilities REIT, has gained more than 9% in 2022. Bank of America also called named a handful of banks and financial services firms on its list. Those names include Charles Schwab , which is down 5.7% in 2022, and Raymond James , which is off 0.5% year to date. -CNBC's Michael Bloom contributed to this report.

Ears of wheat are seen in a field near the village of Hrebeni in Kyiv region, Ukraine July 17, 2020.

Valentyn Ogirenko | Reuters