Worried About President Trump and US Stocks? Buy Japan Now
This maker of cars and motorcycles has a strong share of the U.S. market. Honda Motor Ltd. (NYSE: HMC) is Japan’s third-largest automaker in terms of sales, and it has the top global market share in the initial motorcycle business. North America is a main earnings source, with autos historically highly regarded in the U.S. market.
Honda has the highest exposure to North American business of Japan’s big three (Toyota, Nissan, Honda), slightly lagging in emerging market expansion, though it recently has been aggressive in emerging markets, too, such as ASEAN or India.
Honda shareholders are paid a solid 2.47% dividend. Merrill Lynch rates the shares at Neutral, along with a $39 price target that is lower than the consensus estimate of $40.80. The stock ended last week at $34.65 per share.
This company makes everything from audio gear to grand pianos to guitars, and its shares trade over the counter. Yamaha is a producer of audio/visual products, semiconductors and other computer-related products, sporting goods, home appliances and furniture, specialty metals, machine tools and industrial robots.
Its Musical Instruments business segment includes the manufacture and sale of pianos; digital musical instruments; wind, string and percussion instruments; and other music-related activities.
The Audio Equipment business segment includes the manufacture and sale of audio products, professional audio equipment, information and telecommunication equipment, and other products.
Its Electronic Devices business segment includes the manufacture and sale of semiconductor products, while the Others segment includes automobile interior components, factory automation equipment, golf products, recreation and other lines of business.
Again, no consensus price target for the share was listed. The OTC shares closed trading on Friday at $43.41 apiece.
This foreign company has massive U.S. sales, and also could be a big winner. Toyota Motor Corp. (NYSE: TM) is the world’s largest automaker and contends with global leaders VW Group and GM in sales volume.
The US market is its traditional earnings driver, but the company recently starting to tap into emerging markets such as Southeast Asia and India. Toyota has the highest domestic production rates of Japan’s big three (Toyota, Nissan, Honda).
With everything from the hybrid Prius to the luxury Lexus models, the company covers all demographics with products and could also be a winner.
The Merrill Lynch analysts rate the stock Neutral with a $141.39 target. The Wall Street consensus price target is $138.29. The shares closed Friday at $129.70.
Five of most well-known Japanese companies may often be overlooked by American investors. All have stood the test of time and will be around for years to come.