To augment its position in printers and cameras, Canon has been targeting the high-end of the cinema camera market while quickly increasing presence in the medical-imaging market. The weak global economy is currently impeding growth, so sales are likely to increase less than 5% in 2011 and 2012. But make no mistake, this is another long-term winner with fortunes tied to many markets -- not just Japan. With shares hitting a 52-week low this week, it's time for a fresh look at this stock.
Risks to Consider: These Japanese companies face rising competition from rivals in other parts of Asia, so they will need to readjust their manufacturing bases and other cost inputs in order to remain competitive.
Action to Take: Perhaps the greatest appeal of Japanese stocks right now is the rising purchasing power of many neighboring Asian countries. Rising living standards in the region will most likely lead to higher demand for Japan's goods and services. This isn't to suggest that Japan is on the cusp of a robust economic revival, but only notes that the stocks of major Japanese companies such as the ones I mentioned above have become too cheap in light of their still-strong global footprints and could be set to rebound in a big way.
Disclosure: Neither D. Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV