One of the undervalued stocks with a P/B ratio of 0.5 times or less, showing a solid performance, includes Kyushu Financial Group and other bank stocks.
The P/B ratio (Price-to-Book ratio) is0.5 times or lessA segment of undervalued stocks with a P/B ratio of 0.5 times or less is showing a strong performance. While the Nikkei Stock Average has surged to its highest level in 33 years and is undergoing a correction, investors are buying into stocks that have lagged behind.
When the P/B ratio falls to 0.5 times or less, it is considered unattractive by the market, often avoided due to lack of growth potential and liquidity. However, Bruce Kark of Goldman Sachs Securities stated, "Market attention is once again shifting towards low P/B strategies," targeting overseas investors who missed out on the Japanese stock rally until June.Super undervalued stocksis being recommended.
Bank stocks are standing out in terms of being super undervalued, with silver stocks showing significant increases. $Kyushu Financial Group (7180.JP)$(PBR 0.4 times) has risen over 40% since the beginning of the year. In the consolidated financial results for March 2023, it has essentially secured its highest profit since FG was established. With the Kumamoto expansion of Taiwan Semiconductor Manufacturing (TSMC), financing for real estate development has accumulated, leading to increased interest income. 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 those in Kyushu Financial Group, have also risen since the beginning of the year.
An investment officer at lazard asset management explained to Bloomberg that Japanese financial stocks have not fully incorporated the Bank of Japan's upward revision of the 10-year government bond yield ceiling. They indicate that there is still room for stock prices to rise.
However, following the credit rating agency moody's investors service lowering the credit ratings of 10 regional banks and small banks in the United States, bank stocks are falling in the US market, and the extent to which Japanese bank stocks can hold steady is being watched closely in Japan.
As for ultra undervalued stocks outside the banking sector, $Nissan Motor (7201.JP)$ and $Tokyo Electric Power (9501.JP)$ 、 $Gun Ei Chemical Industry (4229.JP)$the movement of nissan motor co has been solid. Nissan reached a year-to-date high on July 25th. They plan to adopt tesla's charging standard for electric vehicles (EVs) in North America starting in 2025, increasing expectations for growth in the EV sector.
Source: Nikkei, Bloomberg, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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