Telecoms titan Vodafone’s (LSE: VOD) pan-global presence makes it a terrific tonic for those wary of Brexit pains. Vodafone sources only around 10% of total profits from its domestic marketplace, making it less susceptible than many of its Footsie-quoted peers to a potential crash in the UK economy.
And Vodafone continues to expand abroad to bolster its profits outlook. Just last month the mobile operator merged its New Zealand operations with those of Sky as it taps into the increasingly-lucrative multi-services entertainment sector.
Furthermore, I’m convinced rising wealth levels in emerging markets should deliver stunning revenues growth. In particular, I believe the firm’s exposure to the still-exploding Indian economy promises rich returns — organic revenues here leapt 5% in the last fiscal year despite regulatory and competitive pressures.
And in the near term, I reckon deteriorating consumer confidence in Britain could prove less damaging to Vodafone than to many retail businesses. After all, the mobile phone has rapidly become one of life’s necessities, giving the London business better earnings visibility than many of its big-cap rivals.
The right remedy
Like Vodafone, drugs developer AstraZeneca (LSE: AZN) has also identified developing regions as a key pillar to future growth. The company saw sales in these ‘new’ territories advance 6% during January-March, driven by an 11% increase in Chinese medicines demand. And sales of AstraZeneca’s diabetes labels exploded 65% in these places during the quarter.
And I’m backing AstraZeneca’s rapidly-improving pipeline to propel sales higher across all regions. Indeed, the noise surrounding last month’s Brexit ballot washed out fresh regulatory success at AstraZeneca, with the firm’s Zavicefta bacteria battler receiving marketing approval across the European Union.
But the unpredictable nature of drugs creation and effectiveness means that ‘Big Pharma’ can never be considered a sure thing. Indeed, the US Centers for Disease Control and Prevention committee last month refused to recommend AstraZeneca’s FluMist vaccine owing to poor performance in recent years.
Nevertheless, I have great confidence that its rejuvenated R&D operations should deliver the next generation of sales drivers. Besides, medical treatment is one of those things we simply can’t live without, regardless of broader economic pressures.
Brand giant
With shopper confidence in the UK likely to take a hit following last month’s referendum, we can’t underestimate the importance of picking stocks that carry considerable brand power.
Indeed, it’s this quality that makes Reckitt Benckiser (LSE: RB) a white-hot stock candidate for cautious investors, in my opinion.
From Finish dishwasher salt and Scholl foot products to Mucinex cold treatment, Reckitt Benckiser has a wide portfolio of popular products that allows the firm to hike prices — and thus deliver reliable earnings expansion — regardless of the wider economic climate.
Besides, its broad presence across established and emerging markets alike means that the UK accounts for just a small percentage of total sales. I reckon the manufacturer is a terrific bet for those seeking solid earnings growth in turbulent times.