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.

Links:

  • One of the World's Smartest Investors Dumped 2.5 MILLION Shares of This Oil Stock
  • Are You Limiting Yourself to 50% of the Action on Wall Street?
  • Warning: Stocks Like This One Could Lose You 90% in Less Than a Year
  • This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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