should-i-buy-panasonic-stock-1609852707634.jpg
Source: Panasonic Facebook

Panasonic Stock Looks Like a Good Buy Amid EV Shift

By

Updated

On Jan. 4, Panasonic stock rose by 0.1 percent, while the S&P 500 fell by 1.5 percent. The stock was up $0.01 from its previous closing price of $11.71 on a volume of 577,122 shares. Over the past year, the S&P 500 has risen by 14.4 percent, while Panasonic stock has gained 21.7 percent. Is Panasonic stock a buy or sell at this price?

Article continues below advertisement

Popular electric carmaker Tesla Motors announced that it reached an agreement with Panasonic for battery cells made in Japan. The pricing details haven’t been revealed yet.

should-i-buy-panasonic-stock-1609852776023.jpg
Source: Panasonic Facebook
Article continues below advertisement

Panasonic battery for Tesla

On Jan. 4, Tesla announced a new lithium-ion battery cell deal with Panasonic. The agreement is effective from October 1, 2020, to March 31, 2022. The companies haven’t revealed the pricing details yet. Panasonic’s battery cells from Japan are used in Tesla’s Model S and X.

Panasonic on Stocktwits

Panasonic stock has become a major talking point on social media platforms. An investor named JustWantToSeeGreen on Stocktwits is bullish on Panasonic stock. The investor bought the stock when it was trading at $7 and plans to hold it through 2021. The investor thinks that Panasonic will likely benefit from a shift towards electric vehicles.

Article continues below advertisement

Panasonic pays an annual dividend

Panasonic stock pays an annual dividend of $0.19 per share with a dividend yield of 1.64 percent.

panasonic-tesla-battery-1609853900799.jpg
Source: Panasonic North America Facebook
Article continues below advertisement

Panasonic’s valuation

On Jan. 4, Panasonic stock rose by 0.1 percent and closed at $11.72. At that closing price, the market capitalization was $27 billion. Panasonic’s forward PE ratio is 14.62x.

Panasonic’s stock forecast

Panasonic stock has risen by 1.4 percent in the last five days and by 21.7 percent in the last year. The stock is trading 1.8 percent below its 52-week high of $11.94 and 89.3 percent above its 52-week low of $6.19.

Article continues below advertisement

According to estimates compiled by CNN, analysts' median target price is $11.05 for Panasonic, which is 5.7 percent below its current stock price. Among the 16 analysts tracking Panasonic, five recommend a buy, nine recommend a hold, and two recommend a sell. The highest target price of $15.37 is 31.1 percent above the stock's current price, while the lowest target price of $6.40 is 45.4 percent below the stock's current price.

Panasonic stock looks like a buy

Panasonic stock looks like a buy based on the company's strong growth outlook. The demand for batteries for electric vehicles is expected to skyrocket since the EV market is hot. The demand will likely rise more as EVs start to replace gasoline vehicles rapidly. Panasonic has 20.5 gigawatts worth of annual battery production capacity.

How to buy Panasonic stock

Panasonic stock is being traded on OTC markets under the ticker symbol “PCRFY.” Investors can buy Panasonic stock through registered online brokers like Robinhood.

Advertisement

More From Market Realist