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For Immediate Release
Chicago, IL – October 10, 2024 – Today, Zacks Investment Ideas feature highlights Denso Corp. DNZOY, Strattec Security STRT, China Yochai International CYD, Suzuki Motor SZKMY and Yamaha Motor’s YAMHF.
Don't Overlook These 3 Japanese Auto Stocks: DNZOY, SZKMY and YAMF
Japan is starting to stand out among global auto markets as 3 Japanese auto manufacturers saw their stocks added to the Zacks Rank #1 (Strong Buy) list last week.
Seeing a positive trend of earnings estimate revisions, here's a further look at why now is a good time to buy these highly-ranked auto stocks.
Automotive Parts Leader: Denso
We'll start with Denso Corp., a global manufacturer and supplier of automotive technology, systems, and auto parts.
Trading at $14, Denso’s stock is attractive in terms of valuation which has been magnified by the company’s intriguing growth trajectory. Notably, DNZOU trades at 11.4X forward earnings and at a nice discount to its Zacks Automotive-Original Equipment Industry average of 17.1X with a few standout peers being Milwaukee-based Strattec Security and China Yochai International .
Reassuringly, Denso’s annual earnings are expected to soar 74% in its current fiscal 2025 to $1.27 per share compared to EPS of $0.73 in FY24. Even better, FY26 EPS is projected to pop another 16%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Denso’s top line expansion is also appealing as total sales are expected to rise over 3% in FY25 and FY26 with projections heading north of $50 billion.
Automobile & Motorcycle Leaders: Suzuki & Yamaha
As iconic motorcycle manufacturers, Suzuki Motor and Yamaha Motor’s stock are certainly worthy of consideration at their current levels. Furthermore, Suzuki’s reach extends to automobile production with Yamaha being a renowned provider of automotive engines and transportation equipment.
With a current price tag of around $42 a share, Suzuki's stock trades near their Zacks Automotive-Foreign Industry average of 9X forward earnings with Yamaha shares trading at just 6.9X and under $10.
Most enticing is that Suzuki’s EPS is expected to spike 22% in its FY25 to $4.68 with Yamaha’s annual earnings projected to rise 8% this year to $1.27 per share. Better still, Suzuki and Yamaha are expecting 5% and 10% EPS growth in their next fiscal year respectively. This is also accompanied by steady single-digit top line expansion with Suzuki's total sales edging toward $40 billion and Yamaha expected to bring in over $19 billion next year.