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5 Stocks to Buy for the Rest of 2017 That Benefit From Massive Dollar Weakness

One tenet that politicians and economists always like to stress, while keeping their fingers crossed behind their back, is the desire for the U.S. dollar to remain strong. The reality is that a cheaper dollar makes U.S. goods and services much cheaper around the world, and it is especially good for large U.S. multinationals that do a significant amount of business overseas.

The U.S. Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies of U.S. trade partners. The index is down a stunning 6.23% year to date, which is among the biggest drops in years. In addition, many on Wall Street feel that the days of dollar strength appear to be over now that the French election seems to have sounded an all clear on the euro, creating a potential big boost for profits of global-oriented U.S. companies in the coming months.

We screened the Merrill Lynch research universe for stocks that are rated Buy, pay dividends, and do at least 50% of total sales overseas. We found five that look like outstanding choices now.

Exxon

The world’s largest international integrated oil and gas company remains a top Wall Street energy pick. Exxon Mobil Corp. (NYSE: XOM) explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa, Asia, Australia and Oceania. It also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas, and petroleum products.

The company posted solid first-quarter results, and Merrill Lynch recently raised the stock back to a Buy rating, as the analyst feels it is an outstanding place for investors to put money, and Exxon is the firm’s top major idea now. The analysts also cite the ability of the company to maintain and cover the cash dividend with lower oil prices as a key positive.

With gasoline prices the lowest they have been in some time, motorists are expected to hit the nation’s highways in record numbers this year for the long holiday weekend. The stock is an excellent buy for...


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