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The Zacks Analyst Blog Highlights: Sony, Honda Motor, ORIX and OBIC

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For Immediate Release

Chicago, IL –August 13, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sony Corporation SNE, Honda Motor Co., Ltd. HMC, ORIX Corporation IX and OBIC Co., Ltd. OBIIF.

Here are highlights from Friday’s Analyst Blog:

Japan's Wage Growth Hits 21-Year High: 4 Top Picks

Per the latest data issued by Japan’s labor ministry, inflation-adjusted real wages in the country surged 2.8% to its highest levels since 1990s. Such an increase was achieved on the back of a steady increase in regular monthly pay as well as summer bonuses.

This has also led to expectations that Japan’s consumer spending would finally tick up. Moreover, experts believe that Bank of Japan would finally be able to reach its inflation target of 2%. Under such circumstances, investing stocks from the land of the rising sun seems prudent.

Wage Growth at its Highest Level Since January 1997

Japan’s labor ministry also stated on Aug 6 that June’s real wages increased 1.3% compared to May. This was also the biggest increase since 6.2% growth that the metric achieved in January 1997. Moreover, the data comes right ahead of the release of Japan’s second-quarter GDP and might provide the required stimulus to the country’s inflation.

Analysts expect Japan’s second-quarter GDP to hit 1.4% growth. Finally, rising wages are also expected to fuel consumer spending as households in the country are likely to spend their summer bonuses received in June in purchasing luxury items.

Factors Supporting the Increase in Wages

The biggest stimulus to a rise in real wages came from special one-off payments in the form of summer bonuses, which surged 7% on a year-over-year basis. Further, nominal cash earnings increased 3.6% year over year in June, surpassing its 2.1% rate of growth in May.

Moreover, regular pay rose 1.5% in the period compared with a year earlier. A measure of strength in corporate activity, overtime pay, increased at an annual rate of 3.5% in June compared with 2% in May. Also, inflation-adjusted household income surged 4.4% in June, its highest level since July 2015.

4 Best Choices

We have selected four stocks that are expected to gain from these factors. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sony Corporation is the designer, developer and producer of electronic equipment, instruments and devices.

The company is based out of Tokyo and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 24.77%. The Zacks Consensus Estimate for the current year has improved 6.5% over the last 60 days.

Honda Motor Co., Ltd. is the manufacturer and distributor of motorcycles, automobiles, power products and other related products.

The company is based out of Tokyo and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 3.3%. The Zacks Consensus Estimate for the current year has improved 2.6% over the last 60 days.

ORIX Corporation is the provider of diversified financial services to clients in Japan and the Americas.

The company is based out of Tokyo and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 9.2%. The Zacks Consensus Estimate for the current year has improved 2.8% over the last 60 days.

OBIC Co., Ltd. is a provider of system integration services, system support services, office automation services and package software services. It also sells, leases and develops computers, peripherals, related systems and customized software.

The Zacks Rank #2 company is based out of Tokyo. The expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for the current year has improved 2.8% over the last 90 days.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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