In today's world, most companies span several regions and sell across the world. As my Foolish colleague Morgan Housel notes, 10 years ago, less than a third of S&P 500 revenue growth came from abroad. Today, that area makes up half of the S&P 500's growth.
And that number is growing. The truth is, investors regularly underestimate how much demand comes from abroad. More importantly, for large, multinational corporations that have already established a presence in their home markets, much of their future growth comes from abroad.
With that in mind, today we're looking at Kimberly-Clark
Where Kimberly-Clark's sales were five years ago
Five years ago, Kimberly-Clark produced 54% of its sales within the United States.
Source: S&P Capital IQ.
Where Kimberly-Clark's sales are today
Today, while the United States is still a huge part of Kimberly-Clark's story, its Asian and Latin American -- i.e., emerging market -- sales have made enormous strides and now constitute 34% of sales, while Europe is shrinking.
Source: S&P Capital IQ.
5-Year Sales Growth
|Asia, Latin America & Other||
This pattern isn't too different from Kimberly-Clark's main peers. Procter & Gamble
In the end, while companies like Clorox scratching the surface on their international opportunity are intriguing, the superior play looks to be already established global players like Procter & Gamble and Kimberly-Clark. Stagnant growth in the United States should be a continuing trend across these companies for the next decade, so if you're an investor looking for growth, taking full advantage of opportunities in growth markets is key to outperforming the market.
Keep searching for global opportunities
There's a reason companies are seeing outsized growth around the world; in the past decade, emerging market consumer spending grew 250%, leaving the growth rates of the U.S. and Europe in the dust. If you're an investor scanning the world for opportunities, look no further than our new report "3 Companies Set to Dominate the World." In the report, Fool analysts select three companies who have an international growth opportunity that's simply stunning. The report is free, but it won't be available forever, so get your copy by clicking here today!
Eric Bleeker owns shares of no companies listed above. The Motley Fool owns shares of Clorox. Motley Fool newsletter services have recommended buying shares of Procter & Gamble and Kimberly-Clark. The Motley Fool has a disclosure policy.
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