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FORTUNE.COM // JUNE .1 .19
IN THE WEEK BEFORE this issue of Fortune went to press,
the Speaker of the House announced the U.S. was in
the midst of a constitutional crisis; a Trump tweet sent the Dow
plunging 500 points; and politically, America remained as bitterly
divided as ever. So here’s a shock: The U.S., by at least one mea-
sure, is a shining beacon of stability, with one of the more upbeat
outlooks among major markets around the world. The economy
continues to expand at a prodigious rate, corporate earnings are
strong, and the U.S. stands as a model of yield within a global
economy that has ranged from slow to nearly recessionary.
Indeed, in February and March alone, investors pulled almost
$7 billion out of internationally focused funds, according to data
from the Investment Company Institute. Meanwhile, they poured
a combined $4.7 billion into U.S. equity funds.
“People are extraordinarily pessimistic about the outlook for the
rest of the world, and they’re quite optimistic about the outlook
for the U.S.,” according to Kate Warne, a principal and investment
strategist at Edward Jones. That’s echoed by Michael Reynolds, in-
vestment strategy officer at Glenmede, who notes that “the growth
story in the U.S. has been really resilient compared to globally—
and U.S. companies tend to benefit from that.”
There’s just one problem: Buying Ameri-
can is now unusually expensive. With the
S&P 500 having posted its best first quarter
since 1998, investors need to look carefully to
spot good values.
So starting with the gold standard of U.S.
business, this year’s Fortune 500, we first
screened for companies that derive an outsize
percentage of their revenues from the U.S.
market. (This to avoid companies that, while
based here, might be hampered by overseas
headwinds. Case in point: 3M, No. 95 on the
2019 Fortune 500, which missed its first-
quarter earnings guidance on the back of
disappointing numbers out of China.)
From that group of U.S.-focused companies,
we dived deeper to screen for value relative
to the broader market. The result? Four Born
in the U.S.A. stocks to buy now.
INVEST
THESE
STOCKS
ARE
BORN
TO RUN
When it comes to
investing, the U.S.
market remains a
bright spot. We scoured
the 500 for four all-
American stocks that
still have upside.
By Rey Mashayekhi
ILLUSTRATION BY CHRIS GASH
