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Japan has orchestrated several turnarounds in history. Recent data released by government sources show that Japan’s nagging deflation worry, which has been curbing growth momentum, has somewhat allayed, bringing cheer to its economy.

In fact, the East Asian wonder country moved faster than anticipated in the July-September quarter, marking the longest period of growth in more than a decade. Per Cabinet Office data, between July and September, gross domestic product grew at an annualized 1.4%, slightly higher than the anticipated annualized median growth rate of 1.3%.

This marks the seventh quarterly expansion in a row. The previous longest period (eight quarters in a row) of quarterly expansion was April-June 1999 to January-March 2001. In fact, the four-year economic stimulus, masterminded by prime minister Shinzo Abe, to tackle economic stagnation and declining consumer prices, has finally borne fruit.  

Growth Drivers

The third-quarter 2017 economic expansion can be attributed to higher exports of Japanese goods, which were partly aided by a weaker yen. Abenomics, the government stimulus attempted at making Japanese products attractive to foreign buyers, has given a tremendous boost to electronics and cars among others.

Moreover, the simultaneous recovery in world economy – from Asia to European Union to the United States – too has given Japanese exports a shot in the arm.

4 Japanese Stocks

Against the upbeat internal and global economic backdrop, Japanese companies with inherent fundamental strength are now well placed in the global arena.

We have zeroed in on four such Japanese stocks with the help of the Zacks Stock Screener. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Then we narrowed down the list with the help of our new Style Score system, considering stocks with a VGM Score of either A or B. VGM is constructed by taking into consideration the value, growth and momentum aspect of a stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are the four stocks for your consideration.

Tokyo Electron Limited (TOELY - Free Report) is engaged in the manufacture and sale of electronic products for industrial use. The company has a long-term growth rate of 15%.

Zacks Rank: #1
Market Cap: $32.7 billion
VGM Score: B

Canon Inc. (CAJ - Free Report) is a Tokyo-based office automation and  equipment company. It has a long-term growth rate of 5.5%.

Zacks Rank: #1
Market Cap: $42.3 billion
VGM Score: B

Seiko Epson Corporation (SEKEY - Free Report) is a Suwa, Japan-based office automation and equipment company. It has a long-term growth rate of 7%.

Zacks Rank: #1
Market Cap: $9.5 billion
VGM Score: B

Komatsu Ltd. (KMTUY - Free Report) is a Tokyo-based construction and mining company. It currently has a long-term growth rate of 16.2%.

Zacks Rank: #1
Market Cap: $31.9 billion
VGM Score: B

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In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Komatsu Ltd. (KMTUY) - free report >>

Canon, Inc. (CAJ) - free report >>

Seiko Epson Corp. (SEKEY) - free report >>

Tokyo Electron Ltd. (TOELY) - free report >>


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