U.S. investors seeking the considerable benefits from exposure to Asian economies need not exclude companies in their own backyard. Consider Expeditors International of Washington
While the global recession has taken a Paul Bunyan-sized slice of Expeditors' revenue over the last year, Asian markets included, it still remains a profitable operation. During times of strong economic growth, like the years from 2004 to 2007 and hopefully again in the near future, Expeditors' revenue from the Far East can grow very quickly. Since 2008, however, revenue from this region declined as the global recession led to a decline in volume of international shipping. Should the global economy and international trade recover, Expeditors will likely see strong revenue growth from this region again.
What makes Expeditors different than shipping companies such as FedEx
In addition to the potential growth, Expeditors' focus on profitability has allowed it to increase its operating margin for its Asian operations over the last year despite the slump in revenue. This will serve the company well should shipping volumes, and hence revenue, rise in the near future -- which will help Expeditors continue its history of giving its hard-earned cash to shareholders through increasing dividend payments.
If you're searching for an equity investment with the ability to tap into potential growth of Asian markets, which also has a five-star CAPS rating, then Expeditors International should be near the top of your homework list.
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Gerard Torres does not own shares in any of the companies mentioned in this article. FedEx is a Motley Fool Stock Advisor selection. United Parcel Service is a Motley Fool Income Investor pick. The Fool owns shares of and has created a covered strangle position on Expeditors International of Washington. Try any of our Foolish newsletters today, free for 30 days. The Fool disclosure policy goes best with a helping of potatoes.