A major stimulus deal coming out of China could offer a windfall for some U.S. stocks with significant ties to the world's second-largest economy, according to Barclays. "While not Barclays' base case, a China bazooka stimulus would have far-reaching effects on global assets; luckily, the recent rally has so far been fairly limited to Chinese equities and its proxies, thus leaving room for further upside opportunities, including oil, Industrials, & select U.S.
Against this backdrop, the firm screened for companies with high sales exposure to China and low volatility. Here are some of the potential winners: Barclays named casino and resort operator Wynn Resorts among the beneficiaries of a China stimulus deal, with 48% sales exposure to China. Shares have risen nearly 8% in 2024.The consensus rating on the stock is a buy, according to LSEG data.