As one of the largest multinational electronic manufacturers in the world, Foxconn (also known as Hon Hai Industry Co.) offers a variety of consumer electronics, component and computer electronic products. Led by founder, chairman and CEO Terry Gou, the Taiwanese manufacturer also operates in both domestic and overseas markets. With the company having established a global footprint, many investors are looking to claim a share, even in the U.S. where the stock isn’t directly available. If you want further hands-on guidance as you strategize your investments, consider enlisting the help of a financial advisor.
How to Buy Foxconn Stock
When it comes to foreign stocks, you can typically invest either through global depository receipts (GDRs) or American depositary receipts (ADRs). A GDR is a bank certificate that makes shares in a foreign company available to investors in international markets. They’re primarily denominated in either U.S. dollars or euros. Typically, both U.S. and international investors will have access to these depository receipts. The London Stock Exchange is one of the many European exchanges that offers them.
Another approach worth considering is to invest through ADRs. These depository receipts represent an investment in a foreign company’s stock. U.S. depository banks issue them and make them available to investors looking to purchase foreign equity.
If you’re looking to invest directly in Foxconn stock, you’ll be able to do so through two different ways. Some brokerages offer global investing accounts, so you’ll have a range of options to choose from. You may also be able to consult a local brokerage in the country of the company in which you’d like to invest, though this may be more difficult due to language barriers and distance.
Finally, you can also invest through U.S.-registered mutual funds or exchange-traded funds (ETFs). Mutual funds allow you to combine your money with other investors to buy securities in a company. ETFs, however, offer investors a collection of securities. In addition, the securities trade on an exchange and typically contain stocks, bonds or commodities. Both investment options are subject to U.S. regulation, but this ultimately decreases risk for those investing internationally.
Overview of Foxconn
Founded in 1979 and headquartered in New Taipei City, Taiwan, Foxconn develops and sells computers, consumer electronics and metal casings and components. The contract manufacturer also provides machine components for electric vehicles and automobiles, thermal modules, computer enclosures, alloy products, mobile phone and 3C enclosures. Furthermore, Apple, Sony and Dell are just among the many popular companies for which Foxconn builds products for.
Foxconn Stock Overview
|Product Offerings||– Metal casings and components|
– Consumer electronics & computers
– Machine components and more
|Brands and Marketing Channels||– Nokia|
– Yonglin Farm
– Hong Seng
|Technology and Integration Services||– Fii-Foxconn Industrial Internet|
– FIT-Foxconnn Interconnect Technology
– FIH-FIH Mobile Limited
|Research, Development and Distribution||– Computer components|
– Computer thermal module
– Aluminum magnesium cases
– Alloy materials, metal products
– Rail vehicle components
– Electronic components and car accessories
Foxconn’s Financial Profile
Foxconn is one of the largest multinational contract electronics manufacturers. The Taiwan-based company has numerous factories established across China, with plans of U.S. expansion in Wisconsin. Having demonstrated strong financials on a consistent basis, both domestic and foreign investors are eager to claim a share. However, it’s also important to note the current share costs and currency conversions before you buy equity.
In U.S. dollars, Foxconn’s stock was roughly $2.30 per share (63.70 NT$) in March 2022. However, investors should also consider the company’s stock performance over a span of time. For instance, in the previous 52 weeks the lowest price the company’s stock traded at was $2.13 (60.00 NT$) on January 26, 2022. The 52-week high, however, was $2.35 (66.20 NT$).
Should You Buy Foxconn Stock?
Before purchasing shares in Foxconn, it’s important to consider the risks of investing in a foreign market. While international stocks provide a great route for portfolio diversification, they also present a certain level of risk. U.S. investors who choose U.S. publicly-traded stocks typically have greater, and more timely, exposure to financial information and news that pertains to their selected companies. Because accurate and timely financial data is important, you’ll have to determine whether you’ll be able to access such information for Foxconn consistently. In addition, it’ll help to pay attention to the country’s politics. This could help you prepare for anything from currency changes, to stock rises and falls.
You should also consider Foxconn from a holistic approach before purchasing equity. In other words, both quantitative and qualitative factors all affect a company’s overall performance. Whether it’s Foxconn’s total revenue, recent acquisitions, management or competition, each factor contributes to the company as a whole. If you’re set on diversifying your portfolio and expanding into a foreign market, Foxconn could be right for you.
Tips to Become a Better Investor
- If you’re new to investing, or you’d simply like expert guidance with your investment portfolio, a financial advisor may be able to help you. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Are you ready to invest, but not exactly sure how much your investments will generate over time? SmartAsset’s investment calculator can help give you a better idea of the potential return your investments will earn you. All you’ll need is your initial investment amount, the amount of money and the rate at which you’ll contribute, your expected rate of return and the point at which you’ll begin withdrawing money.
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