What are the stocks that benefit from rising interest rates that I can buy now? Bank and insurance stocks are rising one after another in anticipation of improved earnings! An increase of over 90% since the beginning of the year
Domestic long-term interest ratesBut1%Put it on the big stand,Advantages and improvementsCan be expectedFinancial stocks such as bank stocks and insurance stockscontinues to rise. Since the Bank of Japan ended its negative interest rate policy, in the fiscal year ending 25/3Megagin alone will boost profits on a scale of 100 billion yenIt is assumed.
What is particularly likely to attract attention is directly benefiting from rising domestic interest ratesBanks with high domestic net interest incomethat's it. As for insurance stocks, the United States led by famous investor Warren Buffett $Berkshire Hathaway-A (BRK.A.US)$Is a major non-life insurance company $Chubb Ltd (CB.US)$It is known that they hold shares of, and associative purchases are likely. Also, Bloomberg Intelligence (BI) has shareholder returns for domestic non-life insurance for the current fiscal yearAn estimate of 50% increase from the previous fiscal yearThey do, and they have a strong sense of foresight. Which stocks can still be expected to rise? There is a daily turnover of around 1 million shares, and it also covers securities analysts30 major bank and insurance stocksRegarding,Disparity up to the average target stock priceYaprospects、dividend yieldI checked things like that.
[Overview]
★ The divergence from the 31st closing price to the analyst average stock price is the biggest,Room for improvement is expectedIt's $Rakuten Bank (5838.JP)$（18.9%), $Seven Bank (8410.JP)$（13.7%）、 $T&D Holdings (8795.JP)$（9.1%）、 $Kyushu Financial Group (7180.JP)$（7.7%）、 $Japan Post Bank (7182.JP)$（5.0%) continues.
★ At the beginning of the year, $SBI Sumishin Net Bank (7163.JP)$But93.3%and the biggest increase. $MS&AD Insurance Group Holdings (8725.JP)$Is77.5%、 $Chugin Financial Group (5832.JP)$Ya $North Pacific Bank (8524.JP)$Is60% or moreIt's rising. Meanwhile, $TOMONY Holdings (8600.JP)$Ya $Japan Post Bank (7182.JP)$ofYear-to-date rate of increase of 10% or lessSo, $Seven Bank (8410.JP)$IsNegative since the beginning of the year。
★ Of the 31stTrading volume is high and transactions are activeWhat was $Mitsubishi UFJ Financial Group (8306.JP)$、 $Resona Holdings (8308.JP)$、 $Mizuho Financial Group (8411.JP)$、 $Tokio Marine Holdings (8766.JP)$、 $Concordia Financial Group (7186.JP)$It was.
★PBR (stock price-net asset ratio) is low and less than the dissolution valueWhat is the evaluation of $TOMONY Holdings (8600.JP)$at0.298 times、 $Hyakugo Bank (8368.JP)$Is0.353 times、 $Toho Bank (8346.JP)$Is0.409 times. Meanwhile,PBR is highIt's $SBI Sumishin Net Bank (7163.JP)$at2.974 times、 $Tokio Marine Holdings (8766.JP)$Is2.058 times、 $Rakuten Bank (5838.JP)$Is1.918 times。
★ By NikkeiExpected dividend yieldWhat is the most expensive $MS&AD Insurance Group Holdings (8725.JP)$at4.41%、 $Seven Bank (8410.JP)$But4.15%、 $Sumitomo Mitsui Trust Holdings (8309.JP)$Tomizuho $Mizuho Financial Group (8411.JP)$Is3% second half。
(Both as of 5/31)
★ The divergence from the 31st closing price to the analyst average stock price is the biggest,Room for improvement is expectedIt's $Rakuten Bank (5838.JP)$（18.9%), $Seven Bank (8410.JP)$（13.7%）、 $T&D Holdings (8795.JP)$（9.1%）、 $Kyushu Financial Group (7180.JP)$（7.7%）、 $Japan Post Bank (7182.JP)$（5.0%) continues.
★ At the beginning of the year, $SBI Sumishin Net Bank (7163.JP)$But93.3%and the biggest increase. $MS&AD Insurance Group Holdings (8725.JP)$Is77.5%、 $Chugin Financial Group (5832.JP)$Ya $North Pacific Bank (8524.JP)$Is60% or moreIt's rising. Meanwhile, $TOMONY Holdings (8600.JP)$Ya $Japan Post Bank (7182.JP)$ofYear-to-date rate of increase of 10% or lessSo, $Seven Bank (8410.JP)$IsNegative since the beginning of the year。
★ Of the 31stTrading volume is high and transactions are activeWhat was $Mitsubishi UFJ Financial Group (8306.JP)$、 $Resona Holdings (8308.JP)$、 $Mizuho Financial Group (8411.JP)$、 $Tokio Marine Holdings (8766.JP)$、 $Concordia Financial Group (7186.JP)$It was.
★PBR (stock price-net asset ratio) is low and less than the dissolution valueWhat is the evaluation of $TOMONY Holdings (8600.JP)$at0.298 times、 $Hyakugo Bank (8368.JP)$Is0.353 times、 $Toho Bank (8346.JP)$Is0.409 times. Meanwhile,PBR is highIt's $SBI Sumishin Net Bank (7163.JP)$at2.974 times、 $Tokio Marine Holdings (8766.JP)$Is2.058 times、 $Rakuten Bank (5838.JP)$Is1.918 times。
★ By NikkeiExpected dividend yieldWhat is the most expensive $MS&AD Insurance Group Holdings (8725.JP)$at4.41%、 $Seven Bank (8410.JP)$But4.15%、 $Sumitomo Mitsui Trust Holdings (8309.JP)$Tomizuho $Mizuho Financial Group (8411.JP)$Is3% second half。
(Both as of 5/31)
◆ $Rakuten Bank (5838.JP)$
A major internet bank. Utilize the Rakuten Group's customer base. Rakuten Trust is a subsidiary. Earnings forecasts for the current fiscal year, which include expenses related to fintech restructuring projects of 5 billion yen, etc. were disgusted, and stock prices fell drastically after mid-May. Domestic securities are due to restructuring costs and a slowdown in asset growth”The impression is slightly negative“However, foreign securities are against the backdrop of customer delivery channels from the Rakuten Group”There is a high degree of certainty that deposits will increase” and evaluation,High balance growth continuesIt shows the way of looking at it. From the 31st closing price (2867 yen) to the analysts' average target stock price (3407.5 yen)The room for growth is 18.9%。
◆ $Seven Bank (8410.JP)$
ATM fees from financial institutions are a pillar. Amortization burdens will increase in the fiscal year ending 25/3, but fee income will be strong. Expenses for dealing with new banknotes will also be mitigated. From the 31st closing price (264.9 yen) to the analysts' average target stock price (301.25 yen)There is room for growth of 13.7%。
ATM fees from financial institutions are a pillar. Amortization burdens will increase in the fiscal year ending 25/3, but fee income will be strong. Expenses for dealing with new banknotes will also be mitigated. From the 31st closing price (264.9 yen) to the analysts' average target stock price (301.25 yen)There is room for growth of 13.7%。
◆ $T&D Holdings (8795.JP)$
A stock company that holds a living condition. Daido Life, which is strong for small and medium-sized enterprises, and Taiyo Life, which is a pillar for individuals, are at the core. According to Bloomberg Intelligence (BI) estimates, stock buybacks for the fiscal year ending March 25 are expected to be 55 billion yen, an increase of 5 billion yen from the previous fiscal year. Excluding business alliances and shares of partner companies, the plan is to completely eliminate strategically held shares by the end of March 31. The balance of strategically held shares as of the end of March '24 was 241 billion yen (17% of net assets). Regarding the capital gains of life insurance companies under the umbrella of domestic securities,”There's plenty of room for upside” I'm looking at it. From the 31st closing price (2825.5 yen) to the analysts' average target stock price (3083.75 yen)There is room for growth of 9.1%。
A stock company that holds a living condition. Daido Life, which is strong for small and medium-sized enterprises, and Taiyo Life, which is a pillar for individuals, are at the core. According to Bloomberg Intelligence (BI) estimates, stock buybacks for the fiscal year ending March 25 are expected to be 55 billion yen, an increase of 5 billion yen from the previous fiscal year. Excluding business alliances and shares of partner companies, the plan is to completely eliminate strategically held shares by the end of March 31. The balance of strategically held shares as of the end of March '24 was 241 billion yen (17% of net assets). Regarding the capital gains of life insurance companies under the umbrella of domestic securities,”There's plenty of room for upside” I'm looking at it. From the 31st closing price (2825.5 yen) to the analysts' average target stock price (3083.75 yen)There is room for growth of 9.1%。
◆ $Kyushu Financial Group (7180.JP)$
Higo Bank and Kagoshima Bank are under its umbrella. The regional bank ranked 8th in total assets. Financial soundness is high. Domestic securities are major semiconductor contract manufacturers $Taiwan Semiconductor (TSM.US)$With the expansion into Kumamoto, it is expected that “private consumption will gradually expand in response to income expansion, and inbound traffic, which is common from Asian countries such as South Korea, Taiwan, and China, will also expand.” Also, it is predicted that Kyushu's nominal GDP will increase from 50.5 trillion yen in fiscal year 20 to around 75 trillion yen in fiscal year 35. From the 31st closing price (1044.5 yen) to the analysts' average target stock price (1125 yen)Room for growth is 7.7%。
Higo Bank and Kagoshima Bank are under its umbrella. The regional bank ranked 8th in total assets. Financial soundness is high. Domestic securities are major semiconductor contract manufacturers $Taiwan Semiconductor (TSM.US)$With the expansion into Kumamoto, it is expected that “private consumption will gradually expand in response to income expansion, and inbound traffic, which is common from Asian countries such as South Korea, Taiwan, and China, will also expand.” Also, it is predicted that Kyushu's nominal GDP will increase from 50.5 trillion yen in fiscal year 20 to around 75 trillion yen in fiscal year 35. From the 31st closing price (1044.5 yen) to the analysts' average target stock price (1125 yen)Room for growth is 7.7%。
◆ $Japan Post Bank (7182.JP)$
The largest amount of savings in Japan. Domestic securities evaluated consolidated results for the fiscal year ending March 31, '24 as a “profit/dividend plan that exceeds expectations.” Foreign securities, starting with the bank's position situation”Will raising policy interest rates work positively on the internet” I'm looking at it. From the 31st closing price (1,553 yen) to the analysts' average target stock price (1630 yen)There is 5% room for growth.
The largest amount of savings in Japan. Domestic securities evaluated consolidated results for the fiscal year ending March 31, '24 as a “profit/dividend plan that exceeds expectations.” Foreign securities, starting with the bank's position situation”Will raising policy interest rates work positively on the internet” I'm looking at it. From the 31st closing price (1,553 yen) to the analysts' average target stock price (1630 yen)There is 5% room for growth.
◆ $Mitsubishi UFJ Financial Group (8306.JP)$
The largest private financial group in the country. Foreign securities cited 3 points as the main drivers of profit growth: corporate banking for large enterprises, global CIB (bank and securities fusion business model), and domestic corporate retail, and it was evaluated as “the expected ROE is high even within the sector.” A bullish stance is recommended based on continuous shareholder returns. Stock prices are being updated to high prices. From the 31st closing price (1658 yen) to the analysts' average target stock price (1726.67 yen)There is room for growth of 4.1%。
◆ $Mizuho Financial Group (8411.JP)$
A corner of 3 megabanks. As for foreign securities, the domestic corporate sector and market sector, where fees related to investment banking operations are growing, are seen as profit drivers. Also, about current term profit guidance”It was stronger than we expected” It was said. What is the room for increase from the 31st closing price (3214 yen) to the analysts' average target stock price (3269.09 yen)1.7%。
A corner of 3 megabanks. As for foreign securities, the domestic corporate sector and market sector, where fees related to investment banking operations are growing, are seen as profit drivers. Also, about current term profit guidance”It was stronger than we expected” It was said. What is the room for increase from the 31st closing price (3214 yen) to the analysts' average target stock price (3269.09 yen)1.7%。
◆ $Sumitomo Mitsui Trust Holdings (8309.JP)$
Sumitomo Mitsui Trust Bank is under its umbrella. Top trust asset balances. Domestic securities were announced in response to the announcement of financial results for the fiscal year ending March 24, and were evaluated as “positive with an increase in dividends above expectations” as “raised as expected.” Foreign securities are also expected to “achieve steady profit growth due to growth in the fee business and improvements in profits and losses related to stocks, etc.” What is the room for increase from the 31st closing price (3643 yen) to the analysts' average target stock price (3661.82 yen)0.5%。
Sumitomo Mitsui Trust Bank is under its umbrella. Top trust asset balances. Domestic securities were announced in response to the announcement of financial results for the fiscal year ending March 24, and were evaluated as “positive with an increase in dividends above expectations” as “raised as expected.” Foreign securities are also expected to “achieve steady profit growth due to growth in the fee business and improvements in profits and losses related to stocks, etc.” What is the room for increase from the 31st closing price (3643 yen) to the analysts' average target stock price (3661.82 yen)0.5%。
◆ $Concordia Financial Group (7186.JP)$
The Bank of Yokohama and the Bank of East Japan are the top regional banks under its umbrella. Strengths for small to medium sized individuals. Foreign securities with “neutral” investment decisions are expected to calm performance volatility and top-line growth in the corporate sector, and then “among regional banks that are neutral,I want to be relatively bullish and take on the challenge” he commented. Regarding domestic securities earnings forecasts for the current fiscal year,”Good impression with profit and dividend plans that exceed expectationsIt says”. The 31st closing price (944.5 yen) is above analysts' average target stock price (853.75 yen).
The Bank of Yokohama and the Bank of East Japan are the top regional banks under its umbrella. Strengths for small to medium sized individuals. Foreign securities with “neutral” investment decisions are expected to calm performance volatility and top-line growth in the corporate sector, and then “among regional banks that are neutral,I want to be relatively bullish and take on the challenge” he commented. Regarding domestic securities earnings forecasts for the current fiscal year,”Good impression with profit and dividend plans that exceed expectationsIt says”. The 31st closing price (944.5 yen) is above analysts' average target stock price (853.75 yen).
◆ $Resona Holdings (8308.JP)$
There are 4 lines under its umbrella: Resona, Saitama Resona, Kansai Mirai, and Minato. The domestic banking business is the main force. The ratio of Bank of Japan current accounts to assets is large, and the ratio of variable interest rates to loans is high. Foreign securitiesA rise in policy interest rates is likely to lead to a boost in business performanceI pointed it out. On the other hand, it was stated that “there is a strong tendency for stock prices to fluctuate depending on the degree of expectations for policy interest rate revisions by the Bank of Japan.” Domestic securitiesThe share repurchase amount is “more than expected”Also, the acceleration in the pace of policy stock reduction was also evaluated. The 31st closing price (1084 yen) is above analysts' average target stock price (988.64 yen).
There are 4 lines under its umbrella: Resona, Saitama Resona, Kansai Mirai, and Minato. The domestic banking business is the main force. The ratio of Bank of Japan current accounts to assets is large, and the ratio of variable interest rates to loans is high. Foreign securitiesA rise in policy interest rates is likely to lead to a boost in business performanceI pointed it out. On the other hand, it was stated that “there is a strong tendency for stock prices to fluctuate depending on the degree of expectations for policy interest rate revisions by the Bank of Japan.” Domestic securitiesThe share repurchase amount is “more than expected”Also, the acceleration in the pace of policy stock reduction was also evaluated. The 31st closing price (1084 yen) is above analysts' average target stock price (988.64 yen).
[Postscript: Summary]
The ratio of domestic net interest rate income to earnings is high, and it is thought that regional banks are likely to benefit from rising domestic long-term interest rates, and it seems that it is particularly easy for Resona Holdings, which is strong domestically, even though it has a sense of scale like a megabank, to gain popularity. Meanwhile, the Kyushu Financial Group, where demand for funds is expected due to semiconductor-related companies entering Kumamoto, is highly regarded by securities analysts, but so far it seems that stock prices are at a level where they have not been overbought. A policy to set the total return ratio to 50% was announced in late May, and the Hokkaido-based North Pacific Bank, which is one step higher, was also bought on the 31st. There also seems to be a strong trend in anticipation of demand for funds due to Lapidas's expansion into Chitose City, which aims for mass production of next-generation semiconductors. I want to keep a close eye on the growth of internet banks such as Rakuten Bank.
The ratio of domestic net interest rate income to earnings is high, and it is thought that regional banks are likely to benefit from rising domestic long-term interest rates, and it seems that it is particularly easy for Resona Holdings, which is strong domestically, even though it has a sense of scale like a megabank, to gain popularity. Meanwhile, the Kyushu Financial Group, where demand for funds is expected due to semiconductor-related companies entering Kumamoto, is highly regarded by securities analysts, but so far it seems that stock prices are at a level where they have not been overbought. A policy to set the total return ratio to 50% was announced in late May, and the Hokkaido-based North Pacific Bank, which is one step higher, was also bought on the 31st. There also seems to be a strong trend in anticipation of demand for funds due to Lapidas's expansion into Chitose City, which aims for mass production of next-generation semiconductors. I want to keep a close eye on the growth of internet banks such as Rakuten Bank.
―MooMoo News Kathy
Source: Bloomberg, Nihon Keizai Shimbun, IR materials from various companies, moomoo
Source: Bloomberg, Nihon Keizai Shimbun, IR materials from various companies, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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