In this article, we discuss the 5 best Japanese stocks to buy right now. If you want our detailed analysis of these stocks, go directly to the 10 Best Japanese Stocks to Buy Right Now.
5. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)
Number of Hedge Fund Holders: 11
Market Capitalization as of December 1: $44.91 billion
Incorporated in 2002, and headquartered in Tokyo, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG), via its subsidiaries, offers commercial banking, leasing, securities, consumer finance, and other related financial services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. Cowen Group’s Ramius is the leading stakeholder of Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) from the 11 hedge funds that were bullish on the company as of Q3 2021, holding 10.36 million shares worth $72.6 million.
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is the second largest Japanese bank by total assets, and as the economy recovered from the COVID-19 headwinds and credit costs subsided, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) reported a 69% jump in profits to $4 billion in the April-September period. Revenue in the period equaled $6.49 billion, outperforming estimates by $378.83 million.
To strengthen its existing business further, and serve clients in a more efficient manner, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) entered into a strategic alliance with Jefferies Financial Group Inc. (NYSE:JEF) in July, to collaborate on future corporate and investment banking business opportunities. This will allow both organizations to experience growth and explore a broader clientele.
4. Honda Motor Co., Ltd. (NYSE:HMC)
Number of Hedge Fund Holders: 12
Market Capitalization as of December 1: $47.98 billion
Honda Motor Co., Ltd. (NYSE:HMC), one of the best and most well known Japanese companies, is a multinational Tokyo-based conglomerate, manufacturing automobiles, motorcycles, and power equipment. Honda Motor Co., Ltd. (NYSE:HMC) directly competes with Toyota Motor Corporation (NYSE:TM), and its vehicles are sold worldwide.
As of Q3 2021, 12 hedge funds in the database of Insider Monkey were long Honda Motor Co., Ltd. (NYSE:HMC), with total stakes amounting to $338.6 million. This is compared to 10 funds being bullish on the stock in the preceding quarter, with a stake value of almost $375 million. Ken Fisher’s Fisher Asset Management is the leading Honda Motor Co., Ltd. (NYSE:HMC) stakeholder, holding a $242.75 million position in the company.
Morgan Stanley analyst Shinji Kakiuchi on October 12 initiated coverage of Honda Motor Co., Ltd. (NYSE:HMC) with an Equal Weight rating and 3,600 yen price target as he started coverage of Japan’s automakers with an In-Line industry view. Honda Motor Co., Ltd. (NYSE:HMC) reported a Q2 FY2022 EPS of $0.88 on November 5, beating analysts’ estimates by $0.14.
The new Honda Motor Co., Ltd. (NYSE:HMC) CEO, Toshihiro Mibe, announced that he wants Honda Motor Co., Ltd. (NYSE:HMC) to go fully-electric by 2040, although several new models launched will actually have a hydrogen fuel cell, not a big battery to store electricity.
Currently, Honda Motor Co., Ltd. (NYSE:HMC) has one EV, which is only available in Europe, and the company has planned to launch 10 new models in the next five years. Mibe suggested that Honda Motor Co., Ltd. (NYSE:HMC) will strengthen its partnership with General Motors Company (NYSE:GM) to serve the North American market and share electrified, electric, or ICE powertrains.
3. Hitachi, Ltd. (OTC:HTHIY)
Number of Hedge Fund Holders: N/A
Market Capitalization as of December 1: $57 billion
Hitachi, Ltd. (OTC:HTHIY) is a Japanese multinational conglomerate that is the parent company of the Hitachi Group, and specializes in information technology, artificial intelligence, internet of things, big data, and infrastructure. Via its subsidiaries, Hitachi, Ltd. (OTC:HTHIY) offers robotics, escalators, electronics, industrial machinery, semiconductors, power plants, auto parts, and defense technology.
According to a December 2 report, Hitachi, Ltd. (OTC:HTHIY) is one of the major players in the escalator market, which is expected to grow by $3.93 billion, at a CAGR of 3.69% from 2021 to 2026.
2. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 19
Market Capitalization as of December 1: $148.96 billion
Sony Group Corporation (NYSE:SONY) is often referred to as Japan’s fairly priced big tech company, and it is also considered to be underrated by some analysts. Sony Group Corporation (NYSE:SONY) is a multinational conglomerate from Tokyo, positioned as one of the major Japanese technology firms. Sony Group Corporation (NYSE:SONY) is one of the largest global manufacturers of consumer electronics and a strong media entertainment company.
Mario Gabelli’s GAMCO Investors is the largest stakeholder of Sony Group Corporation (NYSE:SONY) as of September this year, holding a $209.2 million position in the company. Overall, 19 hedge funds in the Q3 database of Insider Monkey were bullish on Sony Group Corporation (NYSE:SONY), with total stakes amounting to approximately $389 million.
Financial results for the second quarter ended September 30 were announced by Sony Group Corporation (NYSE:SONY) on October 28. Revenue for the period totaled 2369.4 billion yen, gaining 13% year-over-year. The per share net income attributable to common shareholders totaled 170.26 yen, which was down by 196.82 yen as compared to the preceding-year quarter.
Sony Group Corporation (NYSE:SONY) announced on October 6 that it would launch its own Edge AI Platform Service, namely AITRIOS, to develop and implement AI-driven sensing solutions.
Here is what Cooper Investors has to say about Sony Group Corporation (NYSE:SONY) in its Q2 2021 investor letter:
“Firstly gaming, an area that was already growing in global importance before the pandemic but whose development has only accelerated, with the size of the US video game industry eclipsing movies and music combined in 2020. The portfolio has exposure to this area through investments in Sony (Sony Interactive, producer of PlayStation consoles and games).The first half of 2021 has seen deal activity reaching record levels, around US$60bn combining both M&A and public offerings. While some giant ecosystem owners like Microsoft have made large bets (e.g. the March US$7.5bn deal for Zenimax) we prefer the cautious approach of Sony taking several smaller but more strategic investments. Examples include the additional US$200mn participation in Epic Games (creator of the Unreal Engine and Fortnite) in March of this year, or the recent purchase of Finland’s oldest gaming studio, Housemarque. The latter case represents a good example of Sony being both a ‘safe haven’ and a source of scale and support for small but proven studios to retain their culture and grow into potential triple-A game developers over time.”
1. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 10
Market Capitalization as of December 1: $248.76 billion
Toyota Motor Corporation (NYSE:TM) ranks first on our list of the best Japanese stocks to buy now, based on its $248.76 billion market capitalization. Toyota Motor Corporation (NYSE:TM) is a Japanese multinational automaker that is considered to be one of the largest global automobile manufacturers. Toyota Prius was Toyota Motor Corporation (NYSE:TM)’s first contribution to the hybrid EV category in 1997, making it a research, development, and innovation leader in the market. Today, Toyota Motor Corporation (NYSE:TM) produces over 40 models of electric vehicles.
Fisher Asset Management is the leading Toyota Motor Corporation (NYSE:TM) stakeholder, with 4.79 million shares worth $853 million. Of the 867 hedge funds monitored by Insider Monkey as of Q3 2021, 10 funds were bullish on Toyota Motor Corporation (NYSE:TM), with a total stake value of $876.1 million.
Reports on November 4 suggest that sales in the first half of FY2022 were up 36.1% year-over-year at Toyota Motor Corporation (NYSE:TM), and the EPS for the period amounted to 109.28 yen, comparable to the first half of FY2021 EPS of 45.04 yen. Dividends per share were also announced, amounting to 120 yen.
It was revealed by Toyota Motor Corporation (NYSE:TM) on November 12 that the global production plan in December is expected to reach 800,000 units, incorporating the recovery from the impact of the previous production cutbacks. Toyota Motor Corporation (NYSE:TM)’s 14 plants and 28 production lines in Japan will be also be operating normally for the first time in seven months since May.
You can also take a look at 10 Meme Stocks that More than Doubled in 2021 and 10 Reddit Stocks that Flopped in 2021.
