13 Best Japanese Stocks to Buy According to Hedge Funds

Japan’s economy has finally started to turn the corner over the past couple of years, and that’s what’s driving the recent rally in Japanese stocks that started in 2023. But those just discovering the country’s equities should know that their main index, the Nikkei 225, has been in a sharp upturn for more than a decade. For those not familiar, Japan has spent most of the past 35 years mired in a long economic rut dubbed the Lost Decades. What started as both an economic and market bubble burst at the end of the 1980s and turned into more than three decades of mostly unchecked economic malaise and some of the deepest debt on the planet. Honda Motor Co., Ltd. is a global company most known for their manufacturing prowess and distribution of automobiles like motorcycles.

Honda Motor Co., Ltd. (NYSE: HMC)

The company has seen an overall improvement in performance with EPS, revenue, and EBITDA up from FY2023. It’s a great option for investors who believe that Japanese yen will weaken against the U.S dollar but still want to buy Japanese equities. The top 10 Japanese stocks, ranked by their 1-year percentage gains (as of March 5, 2024). Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

Best Japanese Stocks to Buy According to Hedge Funds

You simply won’t find another AI and energy stock this cheap… with this much upside. Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation. Trust me — you’ll want to read this report before putting another dollar into any tech stock. When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to. In fact, Verge argues this company’s supercheap AI technology should concern rivals.

  • According to Musk, this technology could be worth $250 trillion by 2040.
  • That said, the company had to contend with a drop in revenues from its directly operated physical and online stores.
  • When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
  • ADRs are certificates issued by a U.S. bank that represent stock of a foreign country – but they trade just like regular ol’ U.S. stocks.
  • Finally, the 13 best Japanese stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
  • It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

Takeda Pharmaceutical Company Limited (NYSE: TAK)

According to Musk, this technology could be worth $250 trillion by 2040. You can check out his thoughts on the markets (and more) at @KyleWoodley. The late 2012 election of Prime Minister Shinzō Abe, and his subsequent “Abenomics” plan, put a jolt into equities – even if it had limited effect on the economy. The Nikkei is up more than 265% since then, lagging the S&P 500 by just about 20 percentage points. While the company isn’t anything to shout about, the positive is that its performance has been relatively stable over the past few years, with EPS and EBITDA up from last year. The company has shown strong room for growth by concentrating its efforts on expanding its lineup of electric vehicles, a move in line with the increasing demand for eco-friendly vehicles.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium. In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone. I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report. It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

The Best Performing Stocks on the Tokyo Stock Exchange 🇯🇵

  • With a U.S. brokerage or retirement account, you typically can invest in any stocks or funds on all of the major U.S. exchanges (as well as over-the-counter, too).
  • One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play.
  • This isn’t just about making money – it’s about being part of the future.
  • Each data center powering large language models like ChatGPT consumes as much energy as a small city.
  • In the meantime, the economy, while hardly vibrant, has shown some life over the past couple of years amid a combination of aggressive fiscal and monetary policy and a lifting of COVID-19 restrictions.

For this list, we compiled a list of US-listed Japanese stocks using stock screeners. We then chose the best Japanese stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 900 elite hedge funds tracked as of the end of the third quarter of 2024. The list is arranged in ascending order of the number of hedge fund holders in each company.

Experts Reveal Their Top 5 Semiconductor ETFs

The company is experiencing a healthy momentum in 2024, with its stock growing by 9.5% year to date compared with the sub-industry’s increase of 7.6%. As its name suggests, the SCJ ETF tracks the MSCI Japan Small Cap Index and seeks to provide investors exposure to small cap public companies in Japan. The table below shows the list of stocks, sorted by market capitalisation. You can change the sorting order by clicking on the respective column header. While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play.

Each data center powering large language models like ChatGPT consumes as much energy as a small city. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months. But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible. A day earlier, the company announced an agreement to acquire all membership interests in Houston-based Solar Plus Technology Texas LLC.

We chose the top Japanese stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). To compile our list of the 13 best Japanese stocks to buy according to hedge funds, we used stock screeners from Finviz and Yahoo Finance to find the largest Japanese companies.

Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF)

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution. And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy. A silhouette of a business executive overlooking the Japanese equity markets from a high-rise building. Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Japan already has the highest amount of public debt of any major country. Overall, the IMF forecasts that Japan’s public debt will be 232.7% of GDP this year. In addition, at its January 24 meeting, the Bank of Japan voted to boost interest rates to 0.50%, the highest level in seventeen years. The current approach comes after decades of the BOJ’s efforts to normalize interest rates. ADRs are certificates issued by a U.S. bank that represent stock of a foreign country – but they trade just like regular ol’ U.S. stocks. MUFG offers a variety of financial and investment services including commercial banking, trust banking, international finance, and assets management services.

Picking the best Japanese stocks is pretty similar to picking the best stocks to buy here at home. Japan has a strongly regulated stock market where listed companies are required to provide quarterly and annual financial reports. Thus, there’s a wealth of available information about virtually any company you’d be interested in. Investing in the Japan stock market hasn’t been in the mind of most investors, but with the market’s strong performance, it might be worth having some Japan stocks and exchange-traded-funds (ETFs) into your portfolio. The Sumitomo Mitsui Financial Group is one of the 3 mega-bank groups in Japan; it provides financial products and services and operates in retail, corporate, and investment banking segments globally.

Copyright © best japanese stocks 2025 FactSet Research Systems Inc.Copyright © 2025, American Bankers Association. SEC fillings and other documents provided by Quartr.© 2025 TradingView, Inc. It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

The facility is expected to begin producing 1 GW by the middle of 2025. Production capacity is expected to increase to 2.5 GW by the end of 2025 in anticipation of a strong order backlog from U.S. clients. You’d evaluate Japanese stocks the same way you would evaluate U.S. stocks – by valuation, growth potential, balance sheet health, cash flow generation, and so on. Another factor driving interest in Japanese stocks is the media attention surrounding the stakes Warren Buffett’s Berkshire Hathaway (BRK.B) has built in a handful of Japanese businesses. In his annual letter to shareholders, Buffett said Berkshire’s unrealized gain in dollars in these investments at the end of 2023 was $8 billion.

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply