5 Stocks Under $5 to Play the Market Recovery

These low-dollar bargains look poised to deliver big returns

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5 Stocks Under $5 to Play the Market Recovery

Mizuho Financial

mizuho financial logo 5 Stocks Under $5 to Play the Market RecoveryWhile it might not be a household name to U.S. investors, Mizuho Financial Group (NYSE:MFG) is one of Japan’s biggest banks with a market cap that is larger than Regions Financial (NYSE:RF) and Capital One (NYSE:COF) combined.

Japan obviously has not had a good run of things for the past decade or so. But its fortunes could be changing thanks to aggressive central bank policy and a renewed focus on breaking free from a history of underperformance. MFG stock has beaten the market so far in 2013, and if Japan keeps up its run this could be the first leg in a sustained multiyear rally for Mizuho and other Japanese equities.

The bank trades at about 80% of book value and has a forward P/E of less than 13, so it’s pretty fairly valued right now. But more important, the first sector that’ll benefit from a true recovery in Japan will be banks like Mizuho that provide bigger loans to consumers and businesses.

MFG stock offers up a decent 3.4% dividend to boot.


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/5-stocks-under-5-to-play-the-market-recovery/.

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