YWR: Your Weekend Reading

YWR: Your Weekend Reading

Share this post

YWR: Your Weekend Reading
YWR: Your Weekend Reading
YWR: Global Factor Model
Copy link
Facebook
Email
Notes
More

YWR: Global Factor Model

Erik's avatar
Erik
Jul 25, 2023
∙ Paid
11

Share this post

YWR: Your Weekend Reading
YWR: Your Weekend Reading
YWR: Global Factor Model
Copy link
Facebook
Email
Notes
More
1
Share

Disclosure: These are personal views and data analysis, not investment recommendations or guidance. For that see professional help.

Wow. So much action in Japan.

The full database is at the bottom of the post, but let’s go through the highlights.

Top 25 stocks on YWR Factor Ranking Model

Top 25 stocks on YWR Global Factor Model

First off you have the utilities; Kansai Electric, Chubu Electric, Tohoku Electric (yes, the same one which owns Fukushima) all getting tariff increases approved by the Japanese regulator to make up for higher fuel costs. So their earnings estimates and share prices are flying.

Then you have the auto and truck theme which is still the top global theme in the YWR 300. Nissan and Mazda are in the top 25, but also Honda, Subaru, Toyota Boshoku (auto parts), Yokohama Rubber (tires) and even Toyota all scoring well.

This is a great trend. The stocks are all inexpensive, nobody likes the sector (YWR Untouchable Sector #4) and the average age of a US car is at record highs.

Source: S&P Global Mobility

And then the sleeper industry, steel, which makes sense if Japanese autos are doing well too. Kobe Steel is ranked #2 and JFE #12.

You can see at the country level Japanese stocks have a lot of momentum and have overtaken China. Japanese earnings estimates are going up, the share prices are acting well and valuations are decent.

At the sector level banks are still really good too (The Upside Everyone is Missing in European Banks). This is a combination of the earnings momentum in European banks (Unicredit, BPER, Commerzbank, Piraeus), but also the regional banks in the US which made acquisitions (NY Community Bancorp purchase of Signature and First Citizens BancShares acquisition of Silicon Valley Bank).

And the airlines (YWR Untouchable Sector #5) are posting great 2Q earnings reports and scoring well (LATAM, Eva, American, United). Prices are going up, planes are full, and for once the airlines are unable to add new capacity (pilot shortages, plane shortages and airports already at max capacity). Meanwhile high margin Asia flights still haven’t recovered.

Here is the link to the July database of all 3,500 stocks

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 YWR
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More