NEW YORK ( TheStreet) -- The devastating earthquake and the tsunami that struck Japan on March 11 sent stock markets into a tailspin. Stock prices plunged more than 12% in the last five trading sessions.

We have identified 10 Japanese stocks for the long-term. Panasonic ( PC), Sumitomo Mitsui Financial(SMFG), Mizuho Financial Group ( MFG), Canon ( CAJ), Nidec ( NJ), Nomura Holdings ( NMR), Sony ( SNE), Kyocera ( KYO), Mitsubishi UFJ Financial ( MTU) and Hitachi ( HIT) are expected to return up to 63%, based on their respective 12-month price targets.

Although these companies are based in Japan, they have been focusing on Asia and North America for growth opportunities. These companies garner around 40% of business from markets outside Japan. Most of the companies have good dividend paying history.

These stocks have an upside potential of 27% to 63% with minimum market capitalization of $12 billion.
10. Hitachi ( HIT) manufactures and sells electronic and electrical products in North America, Europe and Asia.

For the third quarter of fiscal 2010, consolidated revenue increased 5% year-over-year to $27.9 billion. Overseas returns that account for around 44% of the company's revenue grew 8% during the December quarter on higher global demand.

Operating income surged 53% year-over-year to $1.5 billion on improved revenue from operating segments such as construction & machinery, electronic systems & equipment and digital media & consumer products (DMCP). Net income for the quarter rose 49% to $993 million.

The company expects to generate higher revenue from segments like automotive systems, DMCP, social infrastructure & industrial systems as these sectors have rebounded after economic stimulus measures were announced around the world. The stock is trading at 7.4 times its estimated fiscal 2010 earnings and analysts expect an upside of 27% in the next one year.

9. Mitsubishi UFJ Financial ( MTU) is a holding company for financial institutions like The Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ Morgan Stanley Securities, and Mitsubishi UFJ NICOS. The group is a leading financial group with total assets worth more than $2.5 trillion. Its services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

During third quarter of fiscal 2011, gross profit improved following gains made on sale of debt securities. Net income benefited from various cost rationalization measures the Group implemented. However, net interest income came under pressure of lower interest rates and decrease in loan balance. The Group's capital ratio stood at 15.24%, while Tier-1 was a robust 11.74%.

Going ahead, the group expects to focus on the Asia and North American markets with a retail-backed strategy. Analysts expect the stock to deliver 33% in the next one year.

8. Kyocera ( KYO) deals with products in the information & communications market, and environment and energy market worldwide.

The company's performance in the digital consumer equipment segment is impressive, given the buzzing demand for mobile phone handsets, including smartphones, certain types of notebook personal computers, and flat panel TVs.

However, currency movement in the recent nine months has derailed business performance as the Yen has appreciated against the USD and the Euro by 7% and 15%, respectively.

Nonetheless, the company's efforts to downgrade costs and improve productivity in each business segment fortified profitability. Net income more than doubled in the first nine months of fiscal 2010 compared to the same period in the last fiscal. The stock holds an upside potential of 35% as per analysts.

7. Sony ( SNE) designs, manufactures and sells electronic equipment, instruments and devices for markets worldwide.

Sales for the third quarter of fiscal 2010 stood at $27.2 billion, down 1.4% year-over-year because of fluctuations in foreign exchange rates. However, sales increased in local currency by 6% year-on-year.

Operating income fell marginally to $1.7 billion, as a significant unfavorable foreign exchange impact outweighed positive factors for the quarter. Operating income in the networked products & services segment increased, driven by the game business, whereas operating income decreased in the consumer, professional & devices segment, negatively affected mainly due to LCD televisions.

The stock received analysts' buy ratings of 67% and has around 35% upside in the next one year.

6. Nomura Holdings ( NMR) is a financial services company operating in Japan and the global markets. The company operates in three divisions: retail, wholesale and asset management.

Third quarter net revenue was $3.62 billion, increasing 7% from the second quarter and 8% in the comparable quarter last year. Income before income taxes was $340 million, up 29% from the prior quarter and 55% year-over-year. Net income increased 13 times sequentially and 31% year-over-year to $164 million from the previous quarter.

On the business performance, Kenichi Watanabe, Nomura's President and CEO, said, "Our retail division increased client assets, while asset management generated higher revenues on a rise in assets under management. Wholesale gained further momentum with robust client activities in Global Markets and an increasingly diverse revenue mix as our US franchise gained traction. Cross-divisional partnership between Investment Banking and Global Markets led to a number of high-profile deals."

Nomura's capital ratios remain highest in the industry. Its total capital ratio was 24.9% and Tier-1 ratio was 17.3%, as of December 2010.

5. Nidec ( NJ) engages in the design, manufacture and marketing of small precision motors, mid-size motors, machinery, and electronic and optical components.

As part of its merger and acquisition strategy, Nidec acquired Nidec Motor Corporation, former motors and controls division of Emerson Electric in September 2010 and entered into a stock purchase agreement with Sanyo Electric in December 2010 to acquire the outstanding shares of Sanyo Seimitsu.

The company recently announced plans to construct Nidec Research & Development Center in Japan. As part of its global sales strategy for newly emerging economies, the company is planning to open a few more sales subsidiaries and five new branches to enhance its operational capabilities in the local Chinese markets.

The company is establishing a new manufacturing subsidiary in Shaoguan, China, and plans to build large-scale manufacturing facilities in India in 2011 and in Brazil in 2012. Analysts predict 38% upside for the stock in the next one year.

4. Canon ( CAJ), through its subsidiaries, manufactures and sells network digital multifunction devices, plain paper copying machines, laser printers, inkjet printers, and cameras under the Canon brand in the Americas, Europe and Asia.

During fourth quarter of 2010, net revenue and operating profit increased 12% and 13.5%, respectively, on a constant currency basis. Performance improved for full-year 2010 with net revenue and operating profit increasing 15.5% and 25%, respectively.

Going forward, the company intends to expand its market share by reinforcing sales capabilities. For 2011, the company expects sales to grow at 10% and net profit at 20%, respectively.

The proportion of debt in terms of total assets declined in the last few years. In 2006, the debt/total assets proportion was 0.7% compared to 0.3% in 2010. Financial ratios like return-on-equity and return-on-assets stood at 9.2% and 6.3%, respectively, double that seen in 2009.

3. Mizuho Financial Group ( MFG), through its subsidiaries, provides various banking and financial services in Japan and the global markets. The company offers retail-banking services, including housing and personal loans, credit cards, deposits, investment products, and consulting services.

Consolidated gross profit for the nine-month period ended December 2010 rose 5% year-over-year. Gross profit was aided by trading gains and the emergence of a customer group segment, both domestically and overseas, arising mainly from non-interest income.

During the first nine months, the company strengthened its capital base by ploughing back most of its profit and through issuance of common stock in the first half of fiscal 2010. The company's medium-term target is to take its Tier-1 capital ratio to 12% and capital ratio to 8%.

Analysts polled by Bloomberg give 100% buy ratings for the stock and it has an upside potential of 46% in the next one year.

2. Sumitomo Mitsui Financial(SMFG) provides various consumer, commercial, corporate banking, and other financial services in Japan.

During third quarter of 2010, ordinary profit and net income increased 85% and 95%, respectively, on substantial trading gains.

SMFG is focusing on improving overseas channels, especially in Asia. It has opened one branch each in China and India. The company has entered into an alliance with RHB Bank of Malaysia, besides supporting local banks in Japan for their corporate customers' overseas business. The company intends to focus on wholesale and retail business in the future.

The company is targeting 10% of consolidated ROE in the medium term and intends to maintain over 10% of consolidated Tier-1 ratio.

The stock could deliver up to 53% return in the next one year and has analysts' top buy ratings.

1. Panasonic ( PC) manufactures and sells electronic and electric products for consumers, businesses and industrial users worldwide.

Net sales for the third quarter increased 21% year-over-year with overseas sales growing faster. Domestic sales and overseas sales were up 19% and 23%, respectively. Net income increased 25% during the third quarter on a constant currency basis, compared to the year-ago quarter. For the nine months ended December 2010, net sales were up 27%.

Panasonic's outstanding financial performance is on the back of strong sales and rationalization of material costs and other general expenses, compensating for severe price competition, appreciation of the Yen and rising material costs.

The company's management is finalizing its growth strategies and reorganizing business structure between subsidiaries like Sanyo, and aims to maximize synergy for the entire Panasonic Group. Analysts expect an upside of 63% in the next one year.

>>To see these stocks in action, visit the 10 Japan Stocks With Upside portfolio on Stockpickr.