Power Up: 5 That Should Do Well Even in Recession As Power Demand Surges: #1 Japan Steel Works
Submitted by EnergyTechStocks.com
A week ago, in the wake of Wall Street’s meltdown, Tokyo’s Nikkei average slid 4.1%, but one company managed to post a 1.3% gain – Japan Steel Works – after a major brokerage initiated coverage with a “buy/high risk” rating, citing the company’s strong prospects as a supplier of steel products for both nuclear and thermal power plants.
So it should go in the months and years ahead, because no matter how big a bite any forthcoming recession takes out of corporate profitability, the global need for more electricity should “power up” the performance Japan Steel Works and a number of other companies.
Japan Steel Works is the world’s leading manufacturer of the principal section of a nuclear reactor’s key component, its containment vessel. Even though it is doubling its production capacity, the company should continue to enjoy a multi-year order backlog.
Even if the U.S.’s financial problems prevent Washington from providing the multi-billion-dollar loan guarantees that will be necessary to jump start a nuclear revival in America, the revival is already well underway in Europe and Asia.
Relatedly, Japan Steel Works is also a key components contributor to other kinds of power plants, including wind power, which is experiencing rapid and still accelerating global growth.
While Japan Steel Works recently said full year earnings are expected to be slightly below analysts’ estimates, the company received a rating upgrade from Rating & Investment Information Inc. (R&I). It also raised its dividend payment.
