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Zacks Value Investor Highlights: Canon, Subaru, Mitsubishi, Sumitomo and Panasonic
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For Immediate Release
Chicago, IL – June 30, 2023 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2114988/looking-for-dirt-cheap-large-cap-stocks
Looking for Dirt-Cheap Large-Cap Stocks?
Welcome to Episode #334 of the Value Investor Podcast.
(0:30) - Stock Screener: Finding Strong Stocks That Are Currently On Sale
(6:20) - Tracey’s Top Stock Picks: Creating A Watchlist
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Are there ANY value stocks out there? With the spotlight still on technology and growth stocks, it can seem like value is an endangered species.
Screening for Cheap Stocks
But running a basic screen for stocks with a price-to-sales (P/S) ratio under 1.0, which usually indicates a company is undervalued, returns 1862 companies. That’s a lot of value stocks.
Large caps continue to be favored by investors in 2023, so if you add stocks that have a $10 billion market cap or higher to the screen, you still get 176 companies. That’s also a lot of value stocks.
Adding the Zacks Rank of #1 (Strong Buy), the highest of the Zacks Rank, of which there are only about 230 stocks at any one time, gives you just 11 stocks.
Where are the Value Stocks?
But surprisingly, more than half of those in the final screen were Japanese companies. In 2023, Warren Buffett went to Japan to talk to some of the companies he had been investing in, one of which appears below. Buffett said in an interview with CNBC that the Japanese trading companies were just too cheap to ignore.
Berkshire Hathaway continues to invest cash in 5 of the trading companies. But there are other Japanese companies that are as cheap as those that Berkshire owns.
Canon makes cameras, inkjet and laser printers, and medical equipment among other products. It continues to see demand remain firm as the global economy recovers from the supply chain issues.
Shares of Canon are up 23% year-to-date but remain cheap. It has a P/S ratio of just 0.9 and a forward P/E of 13.7.
Canon has targeted its dividend payout at 50%. It is currently yielding 3.3%.
Mitsubishi Electric has a market cap of $29 billion. It makes electrical and electronic products. Fiscal 2024 earnings are expected to rise 17.3% to $0.88 from $0.75 last year.
Shares of Mitsubishi Electric are up 40% year-to-date but, yes, are still cheap. It has a price-to-sales ratio of just 0.8 and a forward P/E of just 15.6.
Sumitomo is a large integrated trading company with 6 business units. It is one of the companies that Berkshire Hathaway has invested in.
Its business units include metal products such as steel and tubes, transportation and construction systems, infrastructure including water and airports, media such as Japan’s largest cable TV operator, supermarkets and construction in Japan of office buildings and residential, as well as mineral resources, oil and natural gas and chemicals.
Sound familiar? Now you can see why Buffett took such an interest in these trading companies.
Shares of Sumitomo are up 30% year-to-date. It remains dirt cheap, with a P/S ratio of 0.5 and a forward P/E of 7.6. Sumitomo also pays a dividend, yielding 1.6% on Zacks.com but 4.3% on YahooFinance.
Should Sumitomo be on your short list?
5. Panasonic Holdings Inc.
Panasonic manufactures home appliances, domestic equipment, systems for manufacturing and logistics, batteries and electronic components. It was founded in 1918.
Earnings are expected to rise 9.5% in fiscal 2024 with the Zacks Consensus looking for $0.92 versus just $0.84 last year.
Shares of Panasonic are up 44% year-to-date. But, of course, it’s still cheap. Panasonic trades with a P/S ratio of just 0.5 and has a forward P/E of 12.9. It pays a dividend with a yield of 1.3%.
Should Panasonic be high on your short list?
What Else Should You Know About Cheap Large Cap Stocks in 2023?
Tune into this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
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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Zacks Value Investor Highlights: Canon, Subaru, Mitsubishi, Sumitomo and Panasonic
For Immediate Release
Chicago, IL – June 30, 2023 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2114988/looking-for-dirt-cheap-large-cap-stocks
Looking for Dirt-Cheap Large-Cap Stocks?
Welcome to Episode #334 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Are there ANY value stocks out there? With the spotlight still on technology and growth stocks, it can seem like value is an endangered species.
Screening for Cheap Stocks
But running a basic screen for stocks with a price-to-sales (P/S) ratio under 1.0, which usually indicates a company is undervalued, returns 1862 companies. That’s a lot of value stocks.
Large caps continue to be favored by investors in 2023, so if you add stocks that have a $10 billion market cap or higher to the screen, you still get 176 companies. That’s also a lot of value stocks.
Adding the Zacks Rank of #1 (Strong Buy), the highest of the Zacks Rank, of which there are only about 230 stocks at any one time, gives you just 11 stocks.
Where are the Value Stocks?
But surprisingly, more than half of those in the final screen were Japanese companies. In 2023, Warren Buffett went to Japan to talk to some of the companies he had been investing in, one of which appears below. Buffett said in an interview with CNBC that the Japanese trading companies were just too cheap to ignore.
Berkshire Hathaway continues to invest cash in 5 of the trading companies. But there are other Japanese companies that are as cheap as those that Berkshire owns.
5 Dirt-Cheap Large Cap Top Ranked Stocks
1. Canon Inc. (CAJPY - Free Report)
Canon makes cameras, inkjet and laser printers, and medical equipment among other products. It continues to see demand remain firm as the global economy recovers from the supply chain issues.
Shares of Canon are up 23% year-to-date but remain cheap. It has a P/S ratio of just 0.9 and a forward P/E of 13.7.
Canon has targeted its dividend payout at 50%. It is currently yielding 3.3%.
Should Canon be on your short list?
2. Subaru Corp. (FUJHY - Free Report)
Subaru is a Japanese automaker. In 2023, it launched its first EV, the Subaru Solterra. Earnings are expected to rise 32% this year.
Shares of Subaru are up 23.9% year-to-date but it, too, is still cheap. It has a P/S ratio of only 0.5 and a dirt-cheap forward P/E of 7.1.
Subaru pays a dividend yielding 1.8%.
Should this Japanese automaker be on your short list?
3. Mitsubishi Electric Corp. (MIELF - Free Report)
Mitsubishi Electric has a market cap of $29 billion. It makes electrical and electronic products. Fiscal 2024 earnings are expected to rise 17.3% to $0.88 from $0.75 last year.
Shares of Mitsubishi Electric are up 40% year-to-date but, yes, are still cheap. It has a price-to-sales ratio of just 0.8 and a forward P/E of just 15.6.
It also pays a dividend, yielding 3.8%.
Is Mitsubishi Electric a hidden value gem?
4. Sumitomo Corp. (SSUMY - Free Report)
Sumitomo is a large integrated trading company with 6 business units. It is one of the companies that Berkshire Hathaway has invested in.
Its business units include metal products such as steel and tubes, transportation and construction systems, infrastructure including water and airports, media such as Japan’s largest cable TV operator, supermarkets and construction in Japan of office buildings and residential, as well as mineral resources, oil and natural gas and chemicals.
Sound familiar? Now you can see why Buffett took such an interest in these trading companies.
Shares of Sumitomo are up 30% year-to-date. It remains dirt cheap, with a P/S ratio of 0.5 and a forward P/E of 7.6. Sumitomo also pays a dividend, yielding 1.6% on Zacks.com but 4.3% on YahooFinance.
Should Sumitomo be on your short list?
5. Panasonic Holdings Inc.
Panasonic manufactures home appliances, domestic equipment, systems for manufacturing and logistics, batteries and electronic components. It was founded in 1918.
Earnings are expected to rise 9.5% in fiscal 2024 with the Zacks Consensus looking for $0.92 versus just $0.84 last year.
Shares of Panasonic are up 44% year-to-date. But, of course, it’s still cheap. Panasonic trades with a P/S ratio of just 0.5 and has a forward P/E of 12.9. It pays a dividend with a yield of 1.3%.
Should Panasonic be high on your short list?
What Else Should You Know About Cheap Large Cap Stocks in 2023?
Tune into this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
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.