The 5 Best Large-Cap Stocks for Under $10
Mizuho Financial: The final five was headed by Mizuho Financial (MFG), a Japan-based bank holding company. MFG increased net income 64% year-over year, according to its most recent earnings report, and 35% quarter-over-quarter.
BBVA: Banco Bilboa Viscaya Argentaria (BBVA) has a presence in 32 countries including many in South America. While many financial institutions in Spain have been in crisis mode, BBVA posted net profits that grew 91% for the first six months of 2013. Much of this improvement came from its international divisions, including Turkey, Mexico, the U.S. and South America. Although BBVA is based in Spain, much of its income is tied to South America, so you have to be confident in those countries’ ability to buoy BBVA’s performance (along with an eventual turnaround in Spain).
Mitsubishi UFJ Financial: Tokyo-based Mitsubishi UFJ Financial (MTU) provides financial services in Japan and internationally. Net income increased 40% year-over-year, though it was nearly unchanged from Q1 to Q2.
Sumitomo Mitsui: The third Japanese finance stock on the list, Sumitomo Mitsui (SMFG), showed the highest year-over-year gain in net income, 144.7%, as of its most recent quarter. SMFG attributed this to profits from index-linked investment trusts. Income from the previous quarter was up 16%.
As a note, though, you clearly don’t want to buy any Japanese financials unless you’re generally bullish about the Japanese economy as a whole.
Click to Enlarge I looked at the new top five according to this scoring, the stock performance of Brazil’s Gerdau (GGB) was so awful compared to its peers, it didn’t look like it belonged (although at least it was trending up). I turned to the next-best stock based on the screening and found a better fit in Wipro (WIT), although it has clearly shown more volatility than the others that made the cut.
According to its last earnings statement, WIT’s net income was up 11% year-over-year, which the company attributed to “a pickup in large deal closures.” It has won multimillion-dollar, multiyear projects in the healthcare, retail and aviation fields.
While Wipro says it has deals for the next year or two, its continued success will be determined in part by the continuing need for its IT services.
As of this writing, Bristol Voss did not hold a position in any of the aforementioned securities.