5 Best Japanese Stocks To Buy In 2024

In this article, we discuss the 5 best Japanese stocks to buy in 2024. If you want to read our discussion on the Japanese economy, head directly to 11 Best Japanese Stocks To Buy In 2024. 

5. Takeda Pharmaceutical Company Limited (NYSE:TAK)

Number of Hedge Fund Holders: 12

Takeda Pharmaceutical Company Limited (NYSE:TAK) is a global pharmaceutical company engaged in the research, development, manufacturing, marketing, and out-licensing of pharmaceutical products. The company focuses on different therapeutic areas, including gastroenterology, rare diseases, plasma-derived therapies, immunology, oncology, and neuroscience. Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best Japanese stocks to monitor. On February 1, the company reported a GAAP EPS of ¥94 for the nine months ended December 31, 2023. For the 9-month period, the revenue increased 4.6% year-over-year to ¥3212.9 billion. 

According to Insider Monkey’s fourth quarter database, 12 hedge funds were bullish on Takeda Pharmaceutical Company Limited (NYSE:TAK), compared to 13 funds in the last quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with 6.5 million shares worth $92.6 million. 

4. Toyota Motor Corporation (NYSE:TM)

Number of Hedge Fund Holders: 15

Toyota Motor Corporation (NYSE:TM) is a global automotive company that designs, manufactures, assembles, and sells a wide range of vehicles and related parts and accessories. It is one of the best Japanese stocks to monitor. 

On February 6, Toyota Motor Corporation (NYSE:TM) announced that it is making a $1.3 billion investment in electric vehicles by focusing on its flagship Kentucky battery electric vehicle (BEV) plant. The plant’s purpose is to manufacture a new three-row electric SUV. In a contrasting move to some major US automakers shifting away from EVs, Toyota, along with Honda and Ferrari, is intensifying efforts with new models and increased production to catch up in the electric vehicle market. Toyota previously unveiled EV concept vehicles, namely the Urban SUV and Sport Crossover, signaling its commitment to advancing electric mobility.

According to Insider Monkey’s fourth quarter database, 15 hedge funds were long Toyota Motor Corporation (NYSE:TM), same as the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 6.2 million shares worth $1.14 billion.

Here is what Baron Fund has to say about Toyota Motor Corporation (NYSE:TM) in its Q1 2022 investor letter:

“Toyota’s (NYSE:TM) “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplate disruptive change that will dramatically lower costs and improve quality.”

3. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)

Number of Hedge Fund Holders: 16

Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) offers a diverse range of financial services globally, including banking, leasing, securities, credit card, and consumer finance services. The company operates through four segments – Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit. It is one of the best Japanese stocks to buy. In its Greed & Fear report released on February 2, Jefferies provided an update on its long-only equity portfolio in Japan, which included Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) as well. 

According to Insider Monkey’s fourth quarter database, 16 hedge funds were bullish on Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG), compared to 14 funds in the prior quarter. Israel Englander’s Millennium Management is the leading position holder in the company. 

2. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)

Number of Hedge Fund Holders: 18

Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) is a bank holding company that operates through Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, Global Commercial Banking, and Global Markets segments. It is one of the best Japanese stocks to buy. 

On November 14, 2023, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) announced a stock buyback plan to repurchase up to 400 million shares, equivalent to ¥400 billion. The decision is part of the bank’s strategy to return profits to shareholders and enhance capital efficiency. MUFG’s six-month profit also surged over fourfold, prompting the move to flexibly repurchase its stock.

According to Insider Monkey’s fourth quarter database, 18 hedge funds were bullish on Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), compared to 12 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 6.7 million shares worth $58 million. 

ClearBridge International Value Strategy made the following comment about Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) in its Q4 2022 investor letter:

“We also initiated a position in Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), a Japanese financial company that provides retail and commercial banking, investment banking, capital markets, and asset management services globally. We believe the Bank of Japan’s Yield Curve Control policies have proved a major headwind to Japanese banking earnings since first introduced in 2016. However, as Japan finds itself facing the same rising inflationary pressures that have forced most other global central banks to embark on a path of interest rate normalization, we believe the Bank of Japan is likely to follow suit. This should help remove the headwinds that have weighed on Mitsubishi UFJ’s net interest income for the last six years and help to spur greater increases in income, margins, and profitability.”

1. Sony Group Corporation (NYSE:SONY)

Number of Hedge Fund Holders: 21

Sony Group Corporation (NYSE:SONY) ranks 1st on our list of the best Japanese stocks. It is a multinational company based in Tokyo, Japan, with a focus on designing, developing, producing, and selling electronic equipment, instruments, and devices. On February 14, Sony Group Corporation (NYSE:SONY) reported its financial results for the third quarter of fiscal 2024 ended December 31, 2023. The GAAP EPS came in at ¥294.82 and a revenue of ¥3747.5 billion, up 21.7% year-over-year. 

According to Insider Monkey’s fourth quarter database, 21 hedge funds were bullish on Sony Group Corporation (NYSE:SONY), same as the prior quarter. Mario Gabelli’s GAMCO Investors is a prominent stakeholder of the company, with 1.45 million shares worth $137.65 million. 

Aristotle Capital made the following comment about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:

“Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 20 Best Cities to Retire for 2024 and Jim Cramer’s 2024 Portfolio: 10 Latest Stock Picks.