JPY 3,345 pre-market: 7386.T Japan Warranty Support JPX oversold bounce watch cash gap 27 Feb 2026
7386.T stock trades at JPY 3,345.00 pre-market on 27 Feb 2026, putting Japan Warranty Support Co., Ltd. at JPY 8.27 billion market cap. We see an oversold bounce setup driven by thin liquidity and a large cash-per-share cushion of JPY 3,262.10. The price gap versus book value and the company’s strong current ratio of 4.71 create a mean-reversion opportunity for short-term traders and tactical investors.
Why 7386.T stock looks oversold
The stock trades at JPY 3,345.00 with only 21,300 shares changing hands today. One-day indicators show thin volume and data artifacts, but fundamentals say the move is extreme. Cash per share is JPY 3,262.10 and book value per share is JPY 1,214.16, which suggests the market has priced little premium for operations.
Fundamentals that support a bounce
Japan Warranty Support (7386.T) reports a current ratio of 4.71 and net margin of 26.09%, signaling strong short-term liquidity and healthy margins. Price-to-book is 2.75 and PE (TTM) stands near 20.72, reflecting profitable trailing earnings on limited free-cash-flow disclosure. These ratios argue the stock can re-rate if liquidity returns.
Technical setup and trading signals for an oversold bounce
Price action shows a steep fall relative to 50- and 200-day averages, creating a potential bounce trade on rebounds above JPY 3,340.00 intraday. Low average volume increases volatility and risk, but also boosts reward for quick mean-reversion plays. We recommend tight stops and size limits because technical indicators are inconclusive versus erratic data.
Valuation, risks, and sector context
On a valuation basis, 7386.T stock trades at a price-to-sales near 5.39 and price-to-book 2.75, above broader Industrials peers. The Industrials sector average PE is 18.74, so Japan Warranty Support carries a small premium. Key risks include thin liquidity, group ownership as a subsidiary, and inconsistent EPS reporting in some feeds. Sector tailwinds are modest, with Industrials YTD up 10.21%.
Meyka Grade, guidance and target scenarios
Meyka AI rates 7386.T with a score of 70.24 out of 100 — Grade B+ and suggestion BUY. This grade factors in S&P 500 comparison, sector performance, financial growth, key metrics, and analyst consensus. For scenario targets we outline a conservative 12-month price target of JPY 4,200.00 (implied upside 25.58%) and a downside support near JPY 2,500.00 if liquidity dries.
Trading strategy: how we would approach an oversold bounce
We recommend a staged entry for short-term traders: nibble at JPY 3,300.00–3,360.00 on confirmed intraday strength, scale out near JPY 3,900.00, and set a hard stop below JPY 3,000.00. Position size should be small relative to portfolio due to volume risk. Use limit orders and monitor group news from Japan Best Rescue System and filings for sudden headline risk.
Final Thoughts
Key takeaways: 7386.T stock trades at JPY 3,345.00 pre-market on 27 Feb 2026 and shows an oversold bounce setup driven by thin liquidity and a strong cash buffer of JPY 3,262.10 per share. Valuation metrics include price-to-book 2.75, PE 20.72, and dividend per share JPY 20.00 (yield about 0.60%). Meyka AI’s forecast model projects a 12-month target of JPY 4,200.00, implying upside of 25.58% versus the current price. We stress forecasts are model-based projections and not guarantees. Traders seeking an oversold bounce should use small sizes, tight stops, and confirm strength with renewed volume and company updates. For deeper context, check company filings and the JPX listing before trading.
FAQs
Is 7386.T stock a buy on the oversold setup?
The setup shows potential but is higher risk. Meyka AI gives 7386.T a B+ score and a BUY suggestion. We advise small positions, tight stops, and confirmation from volume or company news before scaling in.
What are key valuation metrics for Japan Warranty Support (7386.T)?
Key metrics: market cap JPY 8,272,920,900, price-to-book 2.75, PE (TTM) 20.72, cash per share JPY 3,262.10, and current ratio 4.71. These show strong liquidity relative to market value.
What price target and risk does Meyka AI forecast for 7386.T stock?
Meyka AI’s model projects a 12-month target of JPY 4,200.00, an implied upside of 25.58%. Downside support is near JPY 2,500.00 if liquidity worsens. Forecasts are projections, not guarantees.
How should traders size positions on this oversold bounce?
Size positions conservatively due to low average volume. Use staged entries between JPY 3,300.00–3,360.00, scale out near JPY 3,900.00, and place stops below JPY 3,000.00 to limit downside exposure.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.