Samsung Electronics Co Ltd
Nato beefs up defences, G7 tightens sanctions, and Brits choose to stay at home
- Jun 26 2022
Company aims to close technology gap with competitors like Samsung, Micron
- Jun 26 2022
The chief of Japans leading semiconductor materials maker explains how he restructured the company through honest dialogue with staff and stakeholders
- Jun 24 2022
Country dominates electric vehicle supply chain as west races to develop rare earths production
- Jun 23 2022
The inside story on the Asia tech trends that matter, from Nikkei Asia and the Financial Times
- Jun 23 2022
Plus, more on bond yields and Italian debt
- Jun 21 2022
BlockFi bailout, Terraform flight ban, Chinas Musk fears
- Are you sure you want to cancel?No
Should You Invest In Samsung Stock
Headquartered in South Korea, Samsung is a massive global electronics brand.
Despite some setbacks with its line of Galaxy smartphones, the company has managed to corner a respectable share of the mobile device market. However, like Apple, Samsungs smartphone sales hit a lull in recent years due to market saturation.
Though smartphone sales arent hitting the mark, Samsung has plenty of other profitable businesses to fall back on. The company is well-diversified, and there is a commitment to investing in research and development to create ever-more-innovative technology.
Some analysts question how much Samsung can realistically expect to grow in coming years, as it has already connected with most consumers in the markets it currently serves.
The real question for investors is whether Samsung will deliver the next major technological innovation. If it does, the stock price could explode. Otherwise, the company may continue to come in behind its biggest smartphone rival, Apple .
A Successful Company That Can Grow Even Further
Samsung is an attractive investment because of its growth capacity. The main source of income is still electronics and semiconductors. Samsung not only has the potential to dominate the smartphone market the company can also continue to grow as a manufacturer of processors and integrated circuits. Demand for Samsung televisions, washing machines, and refrigerators may also increase.
Before you invest in Samsung, it is advisable to keep a close eye on how Samsung is doing in these segments. Is Samsung performing better and are the products gaining in popularity? Then it may be smart to buy Samsung stocks.
How Can Americans Invest In Samsung
Samsung Electronics is one of the most successful companies in modern history. Ever since the company adopted Google’s Android operating system, it’s been eating lunches of many companies including Nokia , Sony Ericsson , HTC, LG and Motorola and it poses the only serious challenge to the kingdom of Apple . Despite its market value of $212 billion, Samsung has a lot of room for growth which the company has been taking advantage of.
Why Invest in Samsung?
Just a few days ago, Samsung Electronics announced its expected quarterly earnings. The company expects to earn $7.7 billion in the first quarter of 2013, which represents a growth rate of 53%. Because Samsung sells more than 30 smart phone models, it is able to address consumers from a wide range of price levels. In a quarter when Apple is expected to report a volume drop of 30%, Samsung was able to see a volume increase of 10%.
Despite posting impressive figures, Samsung is pretty cheap. In fact, the company’s price is comparable to Apple’s price. Samsung’s current price to earnings ratio if 9.9 and the company’s forward P/E ratio is somewhere around 8 depending on which analyst one listens to. Excluding Samsung’s cash reserves of $15 billion, the number drops to 7. This is pretty comparable to Apple’s forward P/E ratio excluding cash.
The ETF of South Korea
Other ETF Alternatives
This article was written by
Cons To Buying Samsung Stock
Consumer electronics and memory market downturn
Samsungs smartphone business is an amazing growth story. A decade ago, Samsung had a 4% market share. Today, 25% of smartphones sold are made by Samsung. But Samsung has put all its chips in one basket. The consumer electronics cycle downturn leads the chip making downturn. Tablet and home appliance sales are also down. Samsung sells the most smartphones to China.
Display sales down
The slowdown in mobile, tablet and home appliances, meanwhile, is causing a slowdown in OLED and LCD display products. Oversupply is also a concern in this market as smartphone display competition heats up.
Patent warsSamsung settled two major patent disputes in 2018. In February, Samsung and Huawei came to an out-of-court settlement over cellular communications technology. Samsung also settled a seven-year patent dispute with Apple, which initially involved a $1 billion settlement in Apples favour.
Though the patent disputes weighed more heavily on investing in Apple stock, since Apple is less diversified. Other legal quagmires include tax evasion and government bribery accusations against Chairman Lee.
Recommended Reading: Step By Step Guide To Investing
Should I Invest In Samsung
South Korea has a growing middle class whose productivity, with the help of Samsung products, keeps rising. From the smart fridge to the worlds best-selling smartphone, Samsung is helping the world perform its daily tasks more efficiently.
If you invest in Samsung stock, you are investing in a company whose product sales have more than doubled to $243 billion over the decade while its stock has quadrupled. Samsung is connecting these digital products and our lives on the cloud.
There is a downside to being the most popular consumer products company. If you buy Apple stocks or buy Tesla stocks, you know well the ups and downs of consumer sales. Samsung did experience sales shortfalls in 2018 but still registered record revenues and profits for the year.
How We Use Your Personal Data
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
- Verify your identity, personalize the content you receive, or create and administer your account.
- Provide specific products and services to you, such as portfolio management or data aggregation.
- Develop and improve features of our offerings.
To learn more about how we handle and protect your data, visit our privacy center.
You May Like: Compare Investment Property Mortgage Rates
Is Apple Stock A Buy
After a disappointing fourth quarter, Apple stock lost some of its luster, but the smartphone leader isnt going down without a fight.
While global smartphone sales are expected to decline by 1.9 percent from 2018 to 2019 a third consecutive year of lower sales Apple is focused on making the most of other increasingly popular technologies.
One of the most promising opportunities that Apple is exploring is wearables a market that is expanding rapidly. North American wearable sales reached $2 billion for second quarter of 2019, and total shipments increased 38 percent year over year. An amazing 7.7 million units were sold.
Apples smartwatch hasnt made a significant impact in its revenues yet, but all signs point to future success.
Apple Watch sales grew 32 percent year over year, and 2.9 million were shipped to consumers. This is a whopping 37.9 percent of the total market.
Compare these figures to FitBit, a company that has long dominated the wearable space. FitBit shipped just 1.9 million devices, coming in second with a market share of 24.1 percent.
The takeaway for investors is this: Apple has proven again and again that it can flex and adapt to consumer expectations, and the company has long been a leader in innovation.
While no one can be sure what the next must-have technology will be, chances are Apple will have a hand in developing and releasing it. For those willing to take a leap of faith, Apple is a promising choice for continued growth.
Buying Samsung Stock In An Etf
For U.S. investors, the easiest and most cost-efficient path to Samsung stock ownership is to buy shares in a South Korea-focused exchange-traded fund. Like a mutual fund, an ETF is a single investment that holds a variety pack of stocks that all share some common trait, such as industry type, market cap or country of origin.
There are a handful of ETFs that count Samsung among their major holdings. Even though Samsung is just one of many stocks held in an ETF, your exposure to the company may not be as watered down as you might think: In some ETFs that invest in South Korean companies, a single holding like Samsung can make up 20% or more of the funds total value.
per trade for online U.S. stocks and ETFs
when you invest in a new Merrill Edge® Self-Directed account.
when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.
when you open and fund an account with Webull. Promotion ends 6/30/2022.
Also Check: Are Annuities A Good Investment For Seniors
History Of Samsung And Samsung Stock
Though Samsung itself has been publicly available for many decades since 1973. The company had 59 unlisted and 19 listed companies on the Korean stock exchange.
In fact, if you had purchased the main Samsung stock, listed under number 005930, in 2011, you would have been rewarded with a 145% return excluding dividends. Heres what Samsungs price history looks like as of August 2018.
Apple Vs Samsung Stock: Battle Of The Smartphone Giants
Apple vs Samsung Stock: There is no question that smartphones have transformed lifestyles at the most fundamental level. These pocket-sized devices make the power of the internet portable, and people of all ages rely on smartphones for everything from communication to monitoring home security.
Researchers who have studied smartphone usage offer the following eye-opening facts:
- The average person spends approximately three hours per day on their phone.
- When combined with tablets, average daily usage goes up to four and a half hours.
- One and a quarter hours of that time involves social media use.
- Users tap, click, or swipe on their phones more than 2,500 times per day.
- More than half of individuals between the ages of 18 and 29 check their phones a few times each hour.
- More than a fifth of that group check their phones every few minutes.
These figures arent exclusive to the United States. In fact, the US isnt even number one. Smartphone users in Brazil and China spend the most time with their devices.
For investors, the question is this: is there still money to be made from buying stock in smartphone design and manufacturing companies? If so, which company is most likely to produce continued growth and strong profits?
Don’t Miss: Mortgage Second Home Vs Investment Property
Should I Buy Samsung Shares
In evaluating whether you should buy Samsung shares, well look specifically at Samsung Electronics since this is what most UK brokers offer trading on. If youre interested in buying shares of Samsung itself, make sure to take a look at the conglomerates shipbuilding and construction divisions since these make up a significant portion of its revenue.
What Is An Adr
ADRs are issued by U.S. depositary banks, and each one represents one or more shares of a foreign stock or a fraction of a share. When you own an ADR, you have the right to obtain the foreign equity it represents, although most U.S. investors find it easier to own the ADR.
For example, let’s say that shares of CanCorp sell on the Toronto Stock Exchange for C$5.75 . A U.S. bank buys a number of shares and sells ADRs at a ratio of 2:1. Therefore, each ADR represents two shares of CanCorp and thus should sell for US$10.
ADRs are held in the vaults of the U.S. banks that issue them. However, the shares they represent are actually held in the home country of the foreign-based corporation by a representative of the U.S. depositary bank. ADRs simplify the process of exchanging foreign shares: since it is only the receipts that are traded, investors do not need to worry about any exchange rate differences or the need to open special brokerage accounts. Furthermore, ADRs entitle investors to all dividends and capital gains.
You May Like: How To Open A Charles Schwab Investment Account
Locate A Suitable Broker
Investors outside of Korea who want to buy shares in Samsung must find brokers who are authorized to trade on the local exchanges.
Orders are typically placed over the phone, in person, or via email rather than online.
On our Best Online Brokers page, you can find Benzingas picks for the best online brokers.
Samsung Business Strategy A Product Portfolio Build For Success
Samsung has been a global innovator since it was founded in 1969 and became a major manufacturer of consumer favorites, such as microwave ovens, black & white TVs, and kitchen appliances.
Fast forward to 2021, and Samsung is one of the largest brands in the world. Recognizable to most people by the classic blue Samsung sign. The companys innovative product lineup has continued to meet the high expectations placed by consumers all over the world. Here are some of the innovations that continue to drive Samsung stock higher:
- Mobile Devices Smartphones, tablets, watches, earbuds, and more.
- TV & Audio Smart TVs, soundbars, 4k television.
- Kitchen Appliances Refrigerators, ovens, dishwashers, cooktops, microwaves.
- Laundry Appliances Washers, dryers, and new air dresser.
- Floor Care Stick vacuums, robotic vacuums, and robotic mops.
- Smart Home SmartThings app to control Samsung smart devices.
- Computers Laptops, monitors, memory, and storage devices.
- Memory Chips and other memory devices.
Samsung is without a doubt one of the largest technology brands in the world. The companys ability to match consumer preferences and go beyond them has helped for sure. In fact, Samsung secured #5 in the 2020 edition of Best Global Brands by Interbrand. The company has worked its way up the list since it was first listed as #43 in 2000.
Recommended Reading: Best Way To Invest In Crypto
How To Buy Samsung Stocks In The Us
If youre U.S. based and want to buy Samsung stocks, we recommend the broker Stash Invest which is an-easy-to-use a banking and micro-investing app that you can use to trade stocks on the go.
Launched in 2015, the app already counts with over 4 million users due to the low minimum deposit required to get started . Stash Invest also only requires a small $1 monthly fee for using its investing and banking services. Read our tutorial below to get started with this broker.
Decide If Samsung Stock Is The Only Stock You Want To Buy
Wed like a word before you buy anythingSamsung or any other stock for that matter. Are you absolutely sure you want to buy an individual stock? Stock picking is extraordinarily hard to do well. Famously rich stock picker Warren Buffett has spent the last decades discouraging pretty much everyone not named Warren Buffet from trying to make money picking individual stocks, he proclaimed: The goal of the non-professional should not be to pick winners neither he nor his helpers can do that but should rather be to own a cross-section of businesses that in aggregate are bound to do well. One stock does not a cross section make. An aggregate of companies, not to mention bonds and real estate, can easily be bought by investing through a robo-advisor. Its up to you to decide if you know better than the financial Yoda with the $81 billion net worth.
Picking individuals stocks is a lot like playing the lottery. In the case of American stocks, the top best performing 4% stocks accounted for the entire wealth creation of the US stock market since 1926, which means there were lots and lots of losing stock pickers. Are you sure Samsung is going to be the stock with the kind of upward trajectory you want for the long haul?
You May Like: How To Get Into Impact Investing
Choose A Stock Broker
Whether an investor is looking at the top tech stocks like Samsung or aiming for much cheaper companies via the best penny stocks, brokers nowadays make it easy to buy any stock with any budget.
With both brokers we review below eToro and Webull investors can spend as little as $10 to buy Samsung stock . It is not necessary to be able to afford a full share in a company. That is because of fractionalised share purchase, which means just a fraction of a share can be purchased.
In reviewing where to buy Samsung stock, smart investors should look out for:
A Successful And Profitable Business
Why is buying Samsung shares worth considering? Samsung is a successful company that makes a lot of profit. In 2017, Samsung made a profit of approximately 40 billion euros. The companys smartphones are popular.
In the first quarter of 2013, for example, more than 62 million smartphones were sold. That is more than 25% more than major competitor Apple. In 2018, the market share of Samsung smartphones is 20.9%. By comparison, the market share of Apple smartphones is 12%.
Read Also: Buying Investment Property Out Of State
Samsungs History As Well As The Stock Of Samsung
Despite the fact that Samsung has been available to the public for many decades since 1973 On the Korean stock exchange, the company had 59 unlisted and 19 listed companies, for a total of 61 companies.
Even if you had purchased the main Samsung stock, which is traded under the ticker symbol 005930, in 2011, you would have received a return on investment of 145 percent .
The following chart depicts Samsungs price history as of August 2018.
How To Buy Samsung Stock
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here’s how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Samsung phones, TVs, laptops and appliances are easy to find and purchase right here in the USA.
Samsung stock, not so much: Because its a foreign company, American investors can’t buy Samsung stock shares the way they typically buy stock through major U.S. exchanges like the Nasdaq and NYSE.
Individual shares of Samsung stock must be purchased either over-the-counter as a “pink sheet” stock which means your purchase isn’t regulated or on the Korea Exchange , which entails opening a South Korean brokerage account.
Theres also a third way: You can buy Samsung stock through an exchange-traded fund.
» Learn more about how to buy international stocks
Recommended Reading: Financing Commercial Real Estate Investments