Steady movement in the corner of ultra-undervalued stocks with a PBR of 0.5 times or less, bank stocks such as Kyushu FG
PBR (stock price/net asset ratio)0.5 times or lessOne corner of the super undervalued stocks is showing steady movement. While the Nikkei Stock Average, which has rapidly risen to the high range for the first time in 33 years, is adjusting, investors are buying stocks that are late.
When PBR is 0.5 times or less, it is equal to not being evaluated by the market, and it is easy to be shunned from the viewpoint of growth potential and liquidity. However, Bruce Kirk of Goldman Sachs Securities said that “market attention will once again shift to low PBR measures,” and did this to overseas investors who missed the Japanese stock rally until JuneSuper undervalued stocksIt is said that they recommend it.
Bank stocks have seen a noticeable rise in super-undervalued stocks. $Kyushu Financial Group(7180.JP$(PBR 0.4 times) has risen 40% or more since the beginning of the year. In the consolidated financial results for the fiscal year ending March 31, 2023, the highest profit was substantially secured after the FG was launched. Due to the expansion of Taiwan Semiconductor Manufacturing (TSMC) into Kumamoto, loans for real estate development etc. accumulated, and interest income increased. US American Century Investments and Dimensional Fund Advisors made purchases in June.
$Nishi-Nippon Financial Holdings(7189.JP$ 、 $Gunma Bank(8334.JP$ 、 $Hachijuni Bank(8359.JP$Other undervalued bank stocks such as these have also risen since the beginning of the year.
The person in charge of management at US Lazard Asset Management explained to the Bloomberg interview that Japanese financial stocks did not sufficiently incorporate the increase in the allowable upper limit of 10-year government bond yields by the Bank of Japan. It shows recognition that there is still room for stock prices to rise.
However, in response to the fact that the rating agency Moody's Investors Service lowered the credit ratings of US central regional banks and 10 small to medium banks on the morning of the 8th Japan time, bank stocks have declined in the US market, and it is being closely watched to what extent bank stocks within Japan will stay on track.
As for super undervalued stocks outside of the banking sector, $Nissan Motor(7201.JP$ Ya $Tokyo Electric Power(9501.JP$ 、 $Gun Ei Chemical Industry(4229.JP$The price movement is also steady. Nissan itself hit a new year-to-date high on July 25. From 2025, it is planned to adopt the US Tesla method as the fast charging standard for EVs in North America, and growth expectations related to electric vehicles (EVs) are growing.
Source: Nihon Keizai Shimbun, Bloomberg, Moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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