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Top five Japanese large cap stocks to watch this winter


This week we take a look at the top stocks in Japan which we think bear closer attention. Japan's Nikkei 225 index has benefited this autumn as investors have poured money into the chip and technology sector, three of which we look at in this article. Since the beginning of October the Nikkei 225 index has been rising in a bullish channel.

According to broker ActivTrades, the Nikkei 225 has a chance of reaching its highest levels of the year as foreign investors who previously oversold Japanese shares have been buying them back. We had a further dive into the Deshe Analytics data as well for this article, looking for some Japanese large cap stocks that might bear further watching this winter.

#1. GMO Internet Group [TYO:9449]

An extremely high quality Japanese tech stock with major overseas exposure as well. Although listed in Japan, GMO Internet provides its services, including domain, hosting, cloud and security to customers all over the planet. The stock still looks relatively cheap with a PE around 12x and at a time when many tech stocks are being mauled. The fundamentals look very sound here: it has a price to book ratio of 3.5, JPY 78bn in equity and an EBITDA of JPY of 61 billion, which is up 23% on its last set of numbers. Free cashflow per share also looks fantastic. Shares are currently up 2.32% over the last six months. There is some short term bearish sentiment in the shares, we think caused by the general negativity around tech at the moment.

Armchair Trader members can see our other four Japanese stocks to watch below.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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