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5 stocks to sell as Russian-Ukrainian war looms


According to President Joe Biden, a Russian invasion of Ukraine could be imminent. That fear has weighed on markets in recent days as investors worried about what the global conflict could mean for their portfolios. If you find yourself looking for protection in an uncertain environment, what are the stocks to sell now?

As Goldman Sachs chief global equity strategist Peter Oppenheimer puts it, an invasion would cause the market to pull back significantly. Specifically, companies that are highly independent of Russian exports and imports will feel the pinch in their revenue streams. These companies will also feel the pressure of economic sanctions imposed by the United States on Russia.

With that in mind, here are five stocks to sell if you think Russia will invade Ukraine.

  • caterpillar (NYSE:CAT)
  • Deere & Company (NYSE:OF)
  • Dover (NYSE:DVV)
  • Dow (NYSE:DOW)
  • Intel (NASDAQ:INTC)

Stocks for sale: Caterpillar (CAT)

Source: aapsky / Shutterstock.com

One of the best-known names in heavy equipment, Caterpillar, has struggled this year. When a manufacturing renaissance loomed on America’s horizon, pundits counted it among the potential winners of the build-back-better boom. Unfortunately for CAT stocks, the bill freeze crushed fleeting market momentum.

Now the company is facing new pressures as Russian sanctions loom. Caterpillar has been in business with Russia since 1973. As the company’s websites indicate, it distributes parts in Moscow and has manufacturing operations in Tosno. Russia has created a lucrative market for the machinery producer.

Unfortunately, the compromised US-Russian trade relationship will certainly affect a top US company with such close ties to Russia.

In 2012, former CAT CEO Doug Oberhelman said he thought Russia could become the company’s top export market. While that may not have happened, Caterpillar’s ties to Russia remain clear. If you think the conflict will escalate, CAT is definitely a stock to sell.

Deere & Company (Germany)

5 stocks to sell as Russian-Ukrainian war looms

Credit: Mark Stephens Photography / Shutterstock.com

Home of the iconic John Deere brand, Deere & Company is an industrial equipment producer with a similar history to Caterpillar. This is not surprising considering that the machinery and mechanical appliances sector accounted for more than 30% of US exports to Russia in 2020. Deere has had a presence in Russia for even longer than Caterpillar, with ties to the country that date back more than 130 years. In 2018, the company announced plans to expand its business in Russia to include the agricultural equipment, forestry and construction sectors.

Russian export earnings aren’t the only aspect of a potential invasion that could threaten DE stock prices. The company mainly deals in large agricultural equipment. This conflict is already causing supply chain disruptions – and agriculture is certainly not immune. It was reported in September 2021 that agribusiness is one of the most promising sectors of the Ukrainian economy. A conflict with Russia will disrupt this, threatening sales of agricultural tools and equipment. Russia and Ukraine are major fertilizer producers, which likely means further disruption for farmers around the world.

All signs point to a bleak outlook for DE stocks.

Stocks for sale: Dover (DOV)

5 stocks to sell as Russian-Ukrainian war looms

Source: Igor Golovniov / Shutterstock.com

Just over a month ago, Dover was among the best performing stocks of 2021 in the S&P500. This year is already starting very differently.

Like its peers on this list of stocks for sale, Dover is primarily involved in the production of equipment. And multiple annual reports and filings with the U.S. Securities and Exchange Commission (SEC) reveal that the company has sales and operations in Russia. In these documents, Dover makes it clear that any type of political, economic or monetary risk in Russia would pose a threat to its business.

Granted, Dover has a more diverse business. Those other efforts will help it escape some of the heat – but savvy investors would be wise to look elsewhere for now.

Dow (DOW)

5 stocks to sell as Russian-Ukrainian war looms

Source: JHVEPhoto / Shutterstock.com

Chemicals, plastics and leather products make up the second largest group on the list of US exports to Russia.

This leading chemical company therefore earns a spot on this list. According to its website, Dow has had a growing presence in Russia for 40 years, primarily supplying the country’s downstream industries such as oil and gas. It has two manufacturing plants in Russia and has offices in Moscow and Kiev.

Dow had a better month than most stocks for sale on this list, but that doesn’t mean it isn’t facing tough times. Any company with such strong ties to Russia will be compromised, and Dow also has business relationships with Ukraine.

Stocks for Sale: Intel Corporation (INTC)

5 stocks to sell as Russian-Ukrainian war looms

Source: various photographs / Shutterstock.com

It’s not just companies with high Russian exports that face a frightening future. Any company heavily dependent on materials imported from Russia will also see its operations compromised if sanctions are implemented. The chip manufacturing industry was already grappling with supply chain disruptions, but this negative trend will worsen in the event of a Russian-Ukrainian war. Intel is the largest chipmaker in the United States Although it has already been named on lists of stocks to sell and avoid due to its latest earnings report, this international crisis is about to erupt. make things worse.

Like Protocol reports, Russia is a leading producer of neon and palladium, two vital elements for chip production. It gets worse from there. Chipmakers also depend on neon which often comes from Ukraine.

Things look so grim for chipmakers that Peter Harrell of the White House National Security Council has urged them to find “alternative sources”. However, there is no guarantee that chipmakers will be able to do this and if they cannot, they face a very uncertain future. As one of the industry leaders, Intel has the most to die for.

At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

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