NEW YORK (CNNMoney) — Investing in emerging markets is looking a little pricey right now but there’s still plenty of room for investors to get in on the action.
U.S. companies such as GM (GM) and KFC-owner Yum Brands (YUM, Fortune 500) are generating an ever-increasing part of their sales from developing countries.
In fact, total sales are expected to rise an average 10% among S&P 500 companies that derive more than half of their revenue overseas, according to a Thomson Reuters research report. That compares to just a 6% uptick in total sales for companies that draw a majority of sales from the United States.
American companies with a presence in Asian and Latin American countries are especially likely to reap top-line benefits, said Thomson Reuters analyst Amitesh Kumar.
That’s because those economies are enjoying a torrid pace of growth compared to the United States. China’s economy grew a whopping 10.3% in 2010, while India’s grew 8%. Meanwhile, the GDP in the United States grew a paltry 2.9% last year.