Kabutan News presents its 12 November edition of a technical feature selecting 18 companies whose P/Es were below the Prime Market average from among stocks where the 5-day and 25-day moving averages formed a golden cross.
In the Tokyo stock market, the Nikkei Average fell for the first time in 4 days, while funds also flowed into strong-performing stocks ahead of the earnings announcement season. The feature explains the selection process combining moving-average trends as a technical indicator with stock valuations.
The feature selected stocks based on a golden cross between the 5-day and 25-day moving averages, which indicates the possibility of a short-term trend reversal to the upside. From these, 18 stocks with particularly low valuations were selected, focusing on those with P/Es below the Prime Market average of 15.22x.
The selected stocks are listed together with their P/E and P/B ratios. Examples include Alconix (7.5, 0.85), Shinko Shoji (8.4, 0.79), and Kawada Technologies (8.9, 0.71), with P/E and P/B ratios for several other stocks also shown in the table. Data for all 18 stocks is included in the feature.