Stocks with low correlation to movements in the Nikkei Average and expected growth in revenue and EPS this fiscal year are selected from the TOPIX 500. アイカ工業 and センコーグループホールディングス are highlighted among the selected stocks.
When selecting stocks for equity investment, low sensitivity to overall market movements is considered important. This time, stocks were selected mainly on the basis of a beta below 0.5 and low correlation with the Nikkei Average, including those with low volatility over the past 90 days.
The selection criteria were TOPIX 500 constituents with an adjusted beta against the Nikkei Average of less than 0.5 over the past year, expected revenue and EPS growth of more than 10% year on year in the current fiscal year, exclusion of public tender offers aimed at delisting, and selection of the 20 stocks with the lowest volatility over the past 90 days from those meeting these criteria.
The stocks attracting particular attention among those selected were アイカ工業 (4206) and センコーグループホールディングス (9069), both of which posted strong year-on-year growth in Q1 earnings. アイカ工業 reported revenue of ¥71.3 billion, operating profit of ¥9.1 billion and an improved operating margin of 12.8%. センコーグループHD reported revenue of ¥248.7 billion and operating profit of ¥10.6 billion, aided by group integration effects and the pass-through of higher prices.