Shares of Japanese companies have been a highly sought-after investment destination for decades among investors across the globe.
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In fact, billionaire investor Warren Buffett’s Berkshire Hathaway (BRK.B) recently got a portfolio boost from its Japanese holdings. This came after the holding company raised its investments in Japanese stocks to over $30 billion — the firm also recently pumped its stake in Mitsubishi (MSBHF) above 10%.
What Are the Best Japanese Stocks to Invest in?
Using the TipRanks Stock Comparison tool, this article compares three such stocks that currently offer more than 20% upside, as the image below shows. Each stock currently has at least a Buy rating from a Wall Street analyst.
Be sure to click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Mizuho Financial (MFG) — Mizuho is one of Japan’s biggest financial institutions, created through the merger of three major domestic banks. The Tokyo-based company, which is led by Masahiro Kihara, provides banking, trust, and securities trading services.
DBS analyst Lim Rui Wen recently issued MFG stock with a price target of $39.22, implying a massive 500.20% upside potential.
Sumitomo Mitsui (SMFG) — Sumitomo is a Japanese holding company that was formed in 2002 to become the parent company of Sumitomo Mitsui Banking Corporation (SMBC), which is now its core banking subsidiary. The holding company provides banking, securities trading, and asset management services.
Another DBS analyst also recently rated SMFG with a price target of $32.79, implying an upside of 93.93%.
Takeda Pharmaceutical Company (TAK) — Takeda is Japan’s most-valued pharmaceutical company, currently worth about $44.63 billion in market capitalization, as of Wednesday. The Tokyo-based company, which was established about two and a half centuries ago, focuses on treating various types of cancer, rare diseases, and conditions that affect the digestive system.
TD Cowen analyst Michael Nedelcovych, in September, reaffirmed his $18 price target on the company, suggesting a 27.75% upside.