Mitsubishi Electric (6503.T)

Mitsubishi Electric's price has dropped roughly a sixth from its recent peak, landing at its lowest point relative to its longer-term trend in months.

What is going on right now?

The broader Japanese market has fallen about 11% from its early October high, and Mitsubishi Electric has been pulled down with it. At ¥4,727, the price has slipped well below where it had been trading on average over the past several months.

How is the business itself doing?

This is a big industrial company that makes everything from factory equipment to power systems. Its revenue grew 14% over the past year, and its most recent quarter showed earnings climbing about 21% from the prior quarter. It carries very little debt.

What stands out?

The gap between what the market expects the company to earn next year versus what it earned last year has widened, suggesting traders see some softening ahead.

What comes next?

Mitsubishi Electric reports earnings on October 30, and that release will show whether the recent pace of profit growth held up through the quarter.