PE of 9 along with 3.9% dividend yield is a pretty good start to any stock selection conversation. Still, there’s a lot more to love about Honda Motor Company (HMC), making it one of our top picks for 2023. Read the full story below….
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Honda Motor Company (HMC) is one of our 7 favorite value stocks for the coming year. Having a value of A is a good start, but only part of the story. Let’s start at the beginning to spell it all out.
Honda is originally a motorcycle manufacturer. Now they make everything from motorcycles to cars, energy products such as boat engines, generators and lawnmowers. It also makes robots and private jets and is currently Japan’s third-largest automaker by sales and has the largest exposure to North America of Japan’s big three.
Honda’s brand and reputation for quality have certainly helped drive demand for its models. HMC has also historically been known for its fuel-efficient cars, enabling it to capitalize on the huge consumer demand for more fuel-efficient vehicles.
The popularity of its vehicles also allowed it to use fewer incentives than other automakers, boosting profits and increasing the resale value of its cars. Like most automakers today, the company is investing in electric vehicles with its Honda 2030 Vision. It should also benefit from an uptick in car production as the chip shortage eases.
Now let’s see why you are really reading this article. To appreciate the huge value story at play.
HMC is one of the top stocks according to the POWR rating with an A or Strong Buy. Stocks with that rating have beaten the S&P 500 by more than 4x since 1999.
In addition, we have a Value rating of A, thanks in large part to an abysmal P/E of 9. On top of that, you have a very attractive dividend yield of 3.9%. This makes for a winning combination and a major reason why Wall Street analysts expect HMC to perform much better in the coming year.
Want to discover more value stocks?
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7 SERIOUSLY undervalued stocks
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Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return
HMC shares traded at $24.07 per share Thursday morning, down $0.02 (-0.08%). Year-to-date, HMC has gained 5.29% versus a 4.69% gain in the benchmark S&P 500 index over the same period.
About the author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the company, but he also shares his 40 years of investing experience in the Reitmeister Total Return Portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
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