A Lull At Nidec Looks Like An Opportunity

There’s a reason I don’t really like investing with a “valuation doesn’t matter” philosophy, and Nidec’s (OTCPK:NJDCY) (6594.TO) recent performance is an example of why. While I love the long-term potential of this leading motor manufacturer, the shares weren’t exactly conventionally cheap around the time of the October earnings report and the shares have languished since, underperforming U.S. industrial stocks by about 10%.

Although Nidec isn’t as cheap as I’d like, I think it’s still priced at a level where long-term investors can earn a market-beating return from Nidec’s efforts in electric vehicles, robotics, factory automation, and efficient appliances. Double-digit long-term revenue expectations are by no means conservative, but a strong position in EV traction motors alone can drive much of that, to say nothing of opportunities in automation and energy efficiency.

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A Lull At Nidec Looks Like An Opportunity