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5 Reasons to Add Mitsubishi UFJ to Your Portfolio Now
Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG) stock looks like an attractive investment option now. The company is well-positioned for organic and inorganic growth, given its solid balance sheet and liquidity position, and strategic partnerships and acquisitions.
Analysts seem optimistic regarding the company's earnings growth prospects. Over the past 60 days, the Zacks Consensus Estimate for MUFG's 2024 earnings has been revised 11.4% upward. Mitsubishi UFJ currently sports a Zacks Rank #1 (Strong Buy).
In the past year, shares of MUFG have gained 18.8% on the NYSE compared with the industry's 8.8% growth.
Image Source: Zacks Investment Research
A few factors mentioned below make the stock worth betting on now.
Earnings Growth: Mitsubishi UFJ witnessed earnings growth of 2.6% in the past three to five years. While the company's earnings are projected to decline in fiscal 2025, the trend will reverse after that. In fiscal 2026, earnings are expected to grow 13.64%.
Moreover, the company's long-term (next five years) projected earnings growth rate is 13.30%, which is higher than the industry's 11.8%.
Synergies From Opportunistic Buyouts and Partnerships: Over the last several years, Mitsubishi UFJ has been expanding inorganically and continues to pursue growth opportunities globally. Since 2016, the bank has completed several acquisitions and partnerships to expand its footprint.
On Aug 2, 2024, MUFG and its consolidated subsidiary, MUFG Bank, ...