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The Zacks Analyst Blog Highlights: Sony, Nikon, Kyocera and Suzuki Motor
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For Immediate Release
Chicago, IL – October 15, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Sony Corporation , Nikon Corporation (NINOY - Free Report) , Kyocera Corporation (KYOCY - Free Report) and Suzuki Motor Corporation (SZKMY - Free Report) .
Household spending in the third-largest economy in the world, Japan, surged to its highest level in the last three years. Such upbeat data from Japan allayed fears that the Asian giant’s economic growth was cooling off. Further, despite being ravaged by typhoons, heat waves, higher-than-usual rainfall and an earthquake, Japanese households continued to raise spending.
This can be attributed to heavy summer bonuses which are handed out to Japan’s workers. Under such circumstances, investing in stocks from Japan that benefit from high consumer spending seems prudent.
Summer Bonuses Boost Household Spending
Per the latest data on Oct 5, household spending in Japan increased 2.8% in August to its highest level since 2015. Japanese households spent the summer bonuses they received in the period on luxury items. Many Japanese firms hand out summer bonuses in June or July which resulted in increased spending on cars, air-conditioners and fancy electronics items.
Moreover, labor cash earnings in August jumped 0.9%, marking a 1.3% rise from the same period, last year. Also, base pay rose 1.4% year over year to its best level since 1997. Per Hiroaki Muto, the chief economist at Tokai Tokyo Research Center, a better-than-expected level of household spending despite rough weather points at a “virtuous cycle" in which wages witness a steady rise. Lastly, robust domestic demand overpowered trade war woes in Japan in August.
Japan’s GDP The Highest in 2 Years
Per Japan’s Cabinet Office, the country’s real GDP witnessed a rise of 3% in the second quarter of 2018. Such a rise follows a contraction that the Japanese economy witnessed in the first quarter.
Overall capital expenditure increased 3.1% in the second quarter of 2018, surpassing the preliminary reading of a rise of 1.3%. Notably, Japan’s capex increased at the fastest pace since the first quarter of 2015. This gave a major boost to Japan’s economic growth in the second quarter.
In August alone, the country’s GDP rose 0.8% supported by robust private-sector demand, which added 0.6 percentage points to the GDP. Further, housing investment and capital spending also added to the growth, rising 1.2% and 0.6%, respectively, in the month. Further, external demand, climbed 2% in the month, whereas imports gained 1%.
4 Best Choices
Japan, witnessed the highest growth in household spending in the last three years. This was the result of a steady increase in monthly pays and summer bonuses. Historically, such events boost consumer spending and thus the GDP. Furthermore, the Japanese spent their bonuses in purchasing consumer electronics, cars and other luxury items.
In this context, we have selected four stocks that are expected to gain from these factors. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sony Corporation is the designer, developer and producer of electronic equipment, instruments and devices.
The company is based out of Tokyo and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 24.92%. The Zacks Consensus Estimate for the current year has improved 6.5% over the last 60 days.
Nikon Corporation is a manufacturer and seller of optical instruments in Japan and worldwide.
The company is based out of Tokyo and carries a Zacks Rank #1. The expected earnings growth rate for the current year is 65.19%. The Zacks Consensus Estimate for the current year has improved 10.1% over the last 60 days.
Kyocera Corporation is a producer and distributor of ceramic and electronic components as well as liquid crystal displays and telecommunications equipment.
The company is based out of Tokyo and carries a Zacks Rank #1. The expected earnings growth rate for the current year is 87.06%. The Zacks Consensus Estimate for the current year has improved 21.7% over the last 60 days.
Suzuki Motor Corporation is a manufacturer of automobiles, motorcycles, and marine and power products in Japan, Europe, rest of Asia, and globally.
The Zacks Rank #2 company is based out of Hamamatsu. The expected earnings growth rate for the current year is 10.7%. The Zacks Consensus Estimate for the current year has improved 1.2% over the last 90 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Sony, Nikon, Kyocera and Suzuki Motor
For Immediate Release
Chicago, IL – October 15, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Sony Corporation , Nikon Corporation (NINOY - Free Report) , Kyocera Corporation (KYOCY - Free Report) and Suzuki Motor Corporation (SZKMY - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Japan’s Household Spending Hits 3-Year High: 4 Picks
Household spending in the third-largest economy in the world, Japan, surged to its highest level in the last three years. Such upbeat data from Japan allayed fears that the Asian giant’s economic growth was cooling off. Further, despite being ravaged by typhoons, heat waves, higher-than-usual rainfall and an earthquake, Japanese households continued to raise spending.
This can be attributed to heavy summer bonuses which are handed out to Japan’s workers. Under such circumstances, investing in stocks from Japan that benefit from high consumer spending seems prudent.
Summer Bonuses Boost Household Spending
Per the latest data on Oct 5, household spending in Japan increased 2.8% in August to its highest level since 2015. Japanese households spent the summer bonuses they received in the period on luxury items. Many Japanese firms hand out summer bonuses in June or July which resulted in increased spending on cars, air-conditioners and fancy electronics items.
Moreover, labor cash earnings in August jumped 0.9%, marking a 1.3% rise from the same period, last year. Also, base pay rose 1.4% year over year to its best level since 1997. Per Hiroaki Muto, the chief economist at Tokai Tokyo Research Center, a better-than-expected level of household spending despite rough weather points at a “virtuous cycle" in which wages witness a steady rise. Lastly, robust domestic demand overpowered trade war woes in Japan in August.
Japan’s GDP The Highest in 2 Years
Per Japan’s Cabinet Office, the country’s real GDP witnessed a rise of 3% in the second quarter of 2018. Such a rise follows a contraction that the Japanese economy witnessed in the first quarter.
Overall capital expenditure increased 3.1% in the second quarter of 2018, surpassing the preliminary reading of a rise of 1.3%. Notably, Japan’s capex increased at the fastest pace since the first quarter of 2015. This gave a major boost to Japan’s economic growth in the second quarter.
In August alone, the country’s GDP rose 0.8% supported by robust private-sector demand, which added 0.6 percentage points to the GDP. Further, housing investment and capital spending also added to the growth, rising 1.2% and 0.6%, respectively, in the month. Further, external demand, climbed 2% in the month, whereas imports gained 1%.
4 Best Choices
Japan, witnessed the highest growth in household spending in the last three years. This was the result of a steady increase in monthly pays and summer bonuses. Historically, such events boost consumer spending and thus the GDP. Furthermore, the Japanese spent their bonuses in purchasing consumer electronics, cars and other luxury items.
In this context, we have selected four stocks that are expected to gain from these factors. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sony Corporation is the designer, developer and producer of electronic equipment, instruments and devices.
The company is based out of Tokyo and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 24.92%. The Zacks Consensus Estimate for the current year has improved 6.5% over the last 60 days.
Nikon Corporation is a manufacturer and seller of optical instruments in Japan and worldwide.
The company is based out of Tokyo and carries a Zacks Rank #1. The expected earnings growth rate for the current year is 65.19%. The Zacks Consensus Estimate for the current year has improved 10.1% over the last 60 days.
Kyocera Corporation is a producer and distributor of ceramic and electronic components as well as liquid crystal displays and telecommunications equipment.
The company is based out of Tokyo and carries a Zacks Rank #1. The expected earnings growth rate for the current year is 87.06%. The Zacks Consensus Estimate for the current year has improved 21.7% over the last 60 days.
Suzuki Motor Corporation is a manufacturer of automobiles, motorcycles, and marine and power products in Japan, Europe, rest of Asia, and globally.
The Zacks Rank #2 company is based out of Hamamatsu. The expected earnings growth rate for the current year is 10.7%. The Zacks Consensus Estimate for the current year has improved 1.2% over the last 90 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.