Firm US Dollar Boosts Stocks Like Arko and Eagers Automotive

The US dollar's strength has investors looking for stocks that could benefit from its power. Three companies stand out as potential beneficiaries of a firm US dollar: Arko, Eagers Automotive, and ATRenew.

Arko, a convenience store and fuel retailer based in Richmond, generates most of its revenue in the US. With about $4.9 billion coming from GPMP fuel distribution and $2.8 billion from wholesale fuel supply, Arko's business is closely tied to the real economy. A strong US dollar can ease imported inventory costs and support margins on fuel and merchandise sales.

Eagers Automotive, a large vehicle retailer in Australia and New Zealand, also benefits from a firm US dollar. Many imported vehicles are priced in US dollars, so cheaper import costs can support margins when currency movements are favorable. Eagers has grown earnings faster than the broader Australian market and is forecast for double-digit revenue and profit growth.

ATRenew, which operates a recommerce platform for pre-owned consumer electronics in China, provides focused exposure to the rise of device recycling in China. A firm US dollar can lower sourcing costs and support margins on any US dollar-linked revenue streams. ATRenew benefits from policy support for trade-in programs and growing consumer comfort with second-hand devices.