Nonetheless, Universal Health Services, Inc. (NYSE:UHS) is poised to benefit from the Affordable Care Act. The company provides charity care and discounts to uninsured and underinsured patients who undergo nonelective treatment at Universal Health Services, Inc. (NYSE:UHS)’ acute health care facilities. It’s a noble action, as these services and discounts cannot be recorded as net revenue. Last year, Universal Health Services, Inc. (NYSE:UHS) provided unreimbursed care in an amount equal to 15% of its $7 billion of revenue. So as more people become insured by law under the Affordable Care Act, the company’s reimbursed service revenue will rise, providing an effortless boost to earnings.
For a company that enjoys vigorous revenue growth, Whole Foods Market, Inc. (NASDAQ:WFM) employs a slow-motion approach to international expansion. Many domestic companies with similar long-term prospects have jumped into international markets over the last decade to establish a presence in developing markets. But Whole Foods Market, Inc. (NASDAQ:WFM) is so focused on optimizing its stores in the U.S. that it is content to have only a middling presence in other countries — for now. As of its most recent business quarter, the company reported that year to date, it derived fully 96.6% of its sales within the U.S. And those sales resulted in an impressive net profit margin of 4.7% — one of the highest margins in the grocery industry.One key to Whole Foods Market, Inc. (NASDAQ:WFM)‘ continued success will be its ability to make steady, incremental progress in its pricing strategies and operational efficiencies, which I’ve discussed previously here. Whole Foods Market, Inc. (NASDAQ:WFM)’ stock tends to be volatile around its earnings releases, and this often provides a good entry point for first-time investors.
Packaging Corp Of America (NYSE:PKG) is a manufacturer of containerboard, the paperboard used to make corrugated boxes. The company also produces corrugated and heavy-duty packaging, retail packaging and displays, and office storage boxes. PCA has exposure to increased shipping and packaging due to an active U.S. economy, and it has executed well over the last year: It grew revenue 12.5% over the prior year as of its most recently reported quarter, and it posts a very decent quarterly profit margin of more than 8%. At $2.9 billion in sales, PCA is relatively small, but it sports a healthy balance sheet and pays a dividend that currently yields 3.2%. Combine each of these characteristics with potential for continued growth, and you can see why the company’s stock is up more than 80% in the last year on a total-return basis.
Final thought: The built-in hedge
Investing in multinationals is an important strategy for a long-term portfolio, but that doesn’t mean that great opportunities don’t exist stateside. Holding blue chip stocks these days often means that you’ve got international exposure by default. By diversifying into the fine companies mentioned above, and ones similar to these, you can in effect create your very own currency hedge.
The article 4 Stocks for a Rising U.S. Dollar originally appeared on Fool.com and is written by Asit Sharma.
Fool contributor Asit Sharma has no position in any stocks mentioned. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.
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