Most investors will be familiar with Panasonic Corp. (OTC: PCRFY) as a consumer electronics company. What many don’t realize is that the Japanese tech giant is at the forefront of lithium cell development and is the manufacturer of batteries used in Tesla (NASDAQ: TSLA) vehicles. Like many lithium-related stocks, Panasonic has underperformed in the year so far. However, its ties to Tesla as well as its potential as a diversified electronics company make it an exciting alternative pick.
Panasonic’s revenue has increased for two consecutive fiscal years, although growth in the 2019 fiscal year was underwhelming at 0.26%. Despite this, the company can still fall back on a strong gross profit margin, achieving 27.25% in 2019.
The potential here is in the electric vehicle market. As Tesla’s exclusive battery provider, the company is in an excellent position. Tesla hit a new production milestone in the previous quarter and its Chinese Gigafactory is already producing vehicles on a small scale.
Panasonic could tag along for growth in the electric vehicle market, and its worldwide reach could result in supply deals that go beyond Tesla. At bargain pricing today, this is a risky but promising pick for alternative investors. Panasonic also pays a dividend with a yield of 2.48%, making it competitive in the bargain stock market.
- 1 Year Price Growth: -6.83%
- YTD Price Growth: 89%
- 3 Month Price Growth: 81%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.