Beware of these dollar-vulnerable stocks if they're in your portfolio

Published Tue, May 31 202212:16 PM EDTUpdated Wed, Jun 1 202211:40 AM EDT

The U.S. dollar has been strong this year, and that could mean bad news for companies dependent on international sales. The dollar index , which measures the U.S. currency's performance against six other major trading currencies such as the euro and the yen, is up more than 6% this year. Earlier this month, the index hit its highest level in roughly two decades. This dollar strength could hamper certain companies that depend on business in Europe and Asia, hurting profits when foreign revenue is translated back into the U.S. currency. To find these stocks, CNBC Pro used FactSet to screen for U.S. companies whose overseas sales are at least 60% of their total, and whose revenue has been declining over the last three months. We then filtered for companies that analysts expect to grow overall sales by 5% or less for the year. Take a look at the results below. Nike is one of the names that made the list. Just 39% of Nike's sales come from the U.S., meaning that 61% of its total revenue is from abroad. The company's sales have also fallen by nearly 1% in the last three months, and analysts expect the shoe and apparel maker to grow revenue by just 5% this year. Shares of Nike have tumbled this year, dropping more than 29%, as the company navigates supply chain issues and rising costs. Another stock that made the list is Hewlett Packard Enterprise. More than two-thirds of the tech company's revenue comes from outside the U.S., and sales have declined slightly over the last three months. Analysts covering the stock, meanwhile, expect Hewlett Packard Enterprise to grow sales by just 2.8% this year. HPE shares, however, have outperformed the broader market, falling 1.2% this year. The S & P 500, meanwhile, has lost 13% in that time. Chemicals company DuPont , which has only 26% of sales in the U.S. and 74% from abroad, also made the list. The company's revenue has fallen more than 23% in the last three months, and analysts expect 2022 sales to decline by 19%. DuPont shares have dropped nearly 20% this year. Another name with a disproportionate reliance on overseas sales that popped up on the CNBC Pro screen is McDonald's , where just 38% of total sales are domestic. The company's revenue has fallen 5.4% over the last three months. Analysts see full-year sales rising less than 1%, and shares of McDonald's have dropped more than 6% this year. Robot technology company Teradyne has perhaps the highest exposure to a stronger dollar, with only 11% of sales coming from the U.S. The company — whose stock is down 34% year to date — has also seen revenue decline by 1.2% over the last three months, and analysts see 2022 sales falling by 7.4%. Other names that made the list are Bio-Rad Laboratories , IPG Photonics , Organon , Otis Worldwide , Aflac , DXC Technology , Dentsply Sirona and Danaher .