from Japan and 2% from Canada. “That should keep their growth rate up around 15%, which is a bargain considering that their price-to-earnings ratio is just 13.8.”
A maker of cardiovascular devices, Guidant Corp. (NYSE: GDT) now has operations in 60 countries, with 32% of its revenues coming from abroad. “Ever since Eli Lilly spun off the company, management has been working to increase sales overseas.”
His final pick, Pioneer Hi Bred (NYSE: PHB), is not only a leading U.S. seed producer but a major player in the development of microorganisms to help make staple crops such as corn, sorghum and sunflowers as well as livestock hardier. With 36% of Pioneer’s revenues coming from overseas, Roach foresees earnings growth of 18% for the next five years.