5 Developed Market Stocks Gaining from Asia's Growth

You don't have to buy stocks listed in Asia to gain from the growth economies. These five companies are listed in the UK and US but a chunk of their revenues come from Asia

Morningstar Equity Analysts 27 November, 2015 | 11:04AM
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This article is part of Morningstar’s Guide to Investing in Asia where we navigate the potential risks for the chance of fantastic rewards from across the region.

Mead Johnson Nutrition (MJN)

Developed markets already represent the minority of profits for pediatric nutrition company Mead Johnson at just around one quarter and will likely diminish in importance due to growing demand within Asia and Latin America. Many developing nations within these regions are both generating robust wage growth and introducing more women into the labour force, contributing to a growing middle class that sees paediatric products, particularly those of leading multinationals, as aspirational brands that warrant premium prices.

Mead Johnson commands leading share in many developing regions, but these areas are also more fragmented, since foreign brand prices are still out of reach of much of the population. Over time, we expect Mead Johnson to generate outsize growth by raising prices at a rate that trails wage increases, which would broaden its customer demographic and consolidate the market at the same time.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
GlaxoSmithKline PLC1,422.60 GBX-0.81Rating
Intel Corp48.28 USD-2.29Rating
Standard Chartered PLC493.18 GBX-0.47Rating
Unilever PLC3,918.00 GBX0.00Rating

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Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.