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Panasonic (PCRFY) Gains 37.7% YTD: Will the Trend Continue?
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Panasonic is witnessing healthy momentum this year so far. Shares of the company have gained 37.7% year to date compared with the sub-industry’s growth of 7.8%.
The company is a leader in the development and manufacture of electronic products for a wide range of consumer, business and industrial needs. The company also offers a wide array of products and services like automotive and avionics systems, industrial systems, etc.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company benefits from increased demand for its Automotive, Connect, and Automotive Batteries business segments. The Automotive segment benefited from a recovery in automobile production. However, the company expects semiconductor shortage and economic uncertainties to act as headwinds.
The Lifestyle business segment is well-positioned to benefit from solid demand for its HVAC system, electrical construction materials in overseas markets and A2W products in Europe. Increased sales in Avionics and Blue Yonder, along with recovery in the aviation industry and robust demand for rugged mobile terminals and notebook PCs, are major tailwinds for the Connect business segment.
In the first quarter, the company signed a contract with Hexagon Purus ASA to supply automotive batteries for commercial vehicles in North America. Also, a medium-term to long-term relationship between Panasonic Energy and Mazda Motor Corporation is discussed to address the market's growing need for battery-powered vehicles and automobile batteries.
Panasonic’s 2024 and 2025 earnings are anticipated to rise 20.2% and 4.3% year over year, respectively. The company expects 2024 earnings to reach ¥460 billion compared with the previous year’s earnings of ¥265 billion.
Panasonic outpaced estimates in three of the trailing four quarters, delivering an earnings surprise of 438.8%, on average.
PCRFY reported a net income of ¥200.9 billion in the first quarter (ended Jun 30, 2023) compared with ¥48.9 billion in the year-ago quarter. Revenues of ¥2,029.7 billion increased 3% year over year.
Apart from its solid fundamentals, the company is prone to several risks. The company’s performance is likely to be affected due to prevailing global macroeconomic uncertainties and rising inflation.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 15.9% in the past 60 days to $4.15.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 26.1% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.
Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 11.3% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 63.1% in the past year.
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Panasonic (PCRFY) Gains 37.7% YTD: Will the Trend Continue?
Panasonic is witnessing healthy momentum this year so far. Shares of the company have gained 37.7% year to date compared with the sub-industry’s growth of 7.8%.
The company is a leader in the development and manufacture of electronic products for a wide range of consumer, business and industrial needs. The company also offers a wide array of products and services like automotive and avionics systems, industrial systems, etc.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company benefits from increased demand for its Automotive, Connect, and Automotive Batteries business segments. The Automotive segment benefited from a recovery in automobile production. However, the company expects semiconductor shortage and economic uncertainties to act as headwinds.
The Lifestyle business segment is well-positioned to benefit from solid demand for its HVAC system, electrical construction materials in overseas markets and A2W products in Europe. Increased sales in Avionics and Blue Yonder, along with recovery in the aviation industry and robust demand for rugged mobile terminals and notebook PCs, are major tailwinds for the Connect business segment.
In the first quarter, the company signed a contract with Hexagon Purus ASA to supply automotive batteries for commercial vehicles in North America. Also, a medium-term to long-term relationship between Panasonic Energy and Mazda Motor Corporation is discussed to address the market's growing need for battery-powered vehicles and automobile batteries.
Panasonic’s 2024 and 2025 earnings are anticipated to rise 20.2% and 4.3% year over year, respectively. The company expects 2024 earnings to reach ¥460 billion compared with the previous year’s earnings of ¥265 billion.
Panasonic outpaced estimates in three of the trailing four quarters, delivering an earnings surprise of 438.8%, on average.
PCRFY reported a net income of ¥200.9 billion in the first quarter (ended Jun 30, 2023) compared with ¥48.9 billion in the year-ago quarter. Revenues of ¥2,029.7 billion increased 3% year over year.
Apart from its solid fundamentals, the company is prone to several risks. The company’s performance is likely to be affected due to prevailing global macroeconomic uncertainties and rising inflation.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Aspen Technology (AZPN - Free Report) and Badger Meter (BMI - Free Report) . Woodward presently sports a Zacks Rank #1 (Strong Buy), whereas Aspen Technology and Badger Meter currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 15.9% in the past 60 days to $4.15.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 26.1% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.
Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 11.3% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 63.1% in the past year.