Five selected stocks found in the quarterly growth rate.

In this report, I have picked out about five hot stocks. When it comes to introducing hot stocks in a report, the approach often involves predicting future performance based on the company's business activities, and explaining. In my case, I differ slightly from the typical individual investor and select stocks by checking what is referred to as factors. Factors are essentially the factors that move stock prices. Some familiar ones include pe and pb.The size of the pe and pb values ​​represent whether stocks are overvalued or undervalued, becoming factors that affect stock prices.There are various other factors as well. The JPX 400, for example, can be considered a factor index that uses ROE. Since around 2010, the term Smart Beta has been heard in fund management using factors. The GPIF (Government Pension Investment Fund), also known as the Whale, uses precisely the Smart Beta approach, which seems to be quite popular among institutional investors as an effective investment method. However, using factors fundamentally involves a quantitative technique that leverages financial engineering, making it quite challenging for individual investors... I personally adapt these factors for use by individual investors.

The factor I focus on is the 'quarterly growth rate'. The quarterly growth rate is a measure of performance growth disclosed every quarter. As the word 'growth' implies,This factor tends to be more effective in markets such as standard and growth, rather than large cap stocks like those included in the Nikkei 225. To confirm the effectiveness of the quarterly growth rate, I conducted a 5-quantile analysis comparing it with ROE.

This chart shows the return trend over approximately 20 years (rebalanced weekly) and daily, where the quarterly growth rate forms a triangle shape closer to a perfect triangle compared to ROE. This analysis indicates that the more symmetrical the shape, the higher the effectiveness. In other words, the quarterly growth rate demonstrates higher effectiveness than ROE.

Although based on quantitative analysis of factors, the stock selection this time included criteria for 'stocks with strong movements after a crash'. Specifically, these include appearing in the recent ranking of price increases twice or more, showing resilience in the Ueda shock crash by falling less and quickly recovering, and having strong reasons (material) for their strength. Descriptions of each stock have been kept to a minimum, so if you want more details, please check each company's website.

Regarding the current market situation, with the LDP leadership election in September and the U.S. presidential election in November approaching, clear themes and movements are difficult to discern. Nevertheless, when examining past examples, there is a tendency for Japanese stocks to rise significantly after the U.S. presidential election. In 2012, 2016, and 2020, significant increases in Japanese stocks occurred after the presidential election. I see a high possibility of the same happening this time as well. Furthermore, after major crashes, there is a trend for the growth market to thrive, so I expect a similar situation after the Ueda shock's major crash, hence my selection from the standard and growth markets.

Note) If you want to know more about the quarterly growth rate, please refer to my book 'Quarterly Growth Rate and Candlestick Analysis' (published by Panrolling). The annual growth rate is calculated using the Rosenberg method.

While many real estate-related stocks are doing well, this stock is also experiencing a significant increase in net profit, with a quarterly growth rate improving significantly from 3Q: 8.58% to 4Q: 22.79%. However, the annual growth rate has decreased from the previous period's 51.39% to an estimated 21.18% for this period. Since it is still early in the 1st quarter, it is worth paying attention to whether there will be an upward revision.

In the 2nd quarter announced before the major market drop on 7/31, both performance and dividends were significantly revised upwards. The following 8/1 saw a limit-up without an opening auction. Despite a decline on 8/5, the market resumed its rise on 8/6 as if nothing had happened, with an expected record high profit for the fiscal year ending in December 2024. Both the quarterly and annual growth rates show strong figures.

A significant decrease in net assets due to goodwill impairment from the acquisition of the US industry leader, US Coleman, an important event assuming continuity. The stock showed a significant gap up in price following the 1st quarter announcement on 7/12 and maintained its price without filling the price gap even during the Ueda Shock market plunge on 7/19. It is currently forming an uptrend once the market downturn stabilizes. The quarterly growth rate is at a high level, and the annual growth rate is also favorable.

After the sharp decline, the 1Q results announced on 8/13 were strong, with a quarterly growth rate significantly higher than the previous one.▲97.10%→1Q: 36.69% and have also released positive news such as achieving nearly double the previous performance in this forecast period. In the midst of surprise earnings, they have been certified as a 'Verified Partner' of the Amazon Ads Partner Network.

Surprising with their earnings on 7/10 and then opening a big window on the next day, 7/11, they have been maintaining that window since then, even amidst the Ueda shock without filling the window, keeping in a consolidating state. Performance is expected to turn to profit from the previous period, and the quarterly growth rate for 1Q is higher compared to the previous one.▲3.61%to107.08%and is growing significantly.

By the way, in individual stock investment, choosing stocks is just the beginning. It is also important to determine the timing of buying and selling in order to make a profit. In my approach, I select stocks based on factors and then analyze the fluctuations in the candlestick chart to develop strategies. As a bonus, I conducted an analysis on the 4490 Visa Sc from five hot stocks.

I used the moomoo securities desktop app for chart analysis, which has many features from an investor's perspective of "It would be great to have this," and I was surprised by its ease of use. In chart analysis, I particularly emphasize aspects related to time such as "daily price movements" and "cycles." With the ease of creating drawings similar to drawing software, not only can long-term analysis be done on an annual basis, but you can also cover a wide range of short-term trading using minute-by-minute data like Ditole. It seems like a tool where you can discover various uses in the future and I am looking forward to it.

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