## Abstract

**We evaluate American Express prediction models with Modular Neural Network (Market Direction Analysis) and Lasso Regression ^{1,2,3,4} and conclude that the AXP stock is predictable in the short/long term. **

**According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold AXP stock.**

**AXP, American Express, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.**

*Keywords:*## Key Points

- What is prediction model?
- Decision Making
- Technical Analysis with Algorithmic Trading

## AXP Target Price Prediction Modeling Methodology

We consider American Express Stock Decision Process with Lasso Regression where A is the set of discrete actions of AXP stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^{1,2,3,4}

F(Lasso Regression)

^{5,6,7}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (Market Direction Analysis)) X S(n):→ (n+6 month) $\sum _{i=1}^{n}\left({r}_{i}\right)$

n:Time series to forecast

p:Price signals of AXP stock

j:Nash equilibria

k:Dominated move

a:Best response for target price

For further technical information as per how our model work we invite you to visit the article below:

How do AC Investment Research machine learning (predictive) algorithms actually work?

## AXP Stock Forecast (Buy or Sell) for (n+6 month)

**Sample Set:**Neural Network

**Stock/Index:**AXP American Express

**Time series to forecast n: 01 Sep 2022**for (n+6 month)

**According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold AXP stock.**

**X axis: *Likelihood%** (The higher the percentage value, the more likely the event will occur.)

**Y axis: *Potential Impact%** (The higher the percentage value, the more likely the price will deviate.)

**Z axis (Yellow to Green): *Technical Analysis%**

## Conclusions

American Express assigned short-term B1 & long-term B1 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (Market Direction Analysis) with Lasso Regression ^{1,2,3,4} and conclude that the AXP stock is predictable in the short/long term.**

**According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold AXP stock.**

### Financial State Forecast for AXP Stock Options & Futures

Rating | Short-Term | Long-Term Senior |
---|---|---|

Outlook* | B1 | B1 |

Operational Risk | 62 | 47 |

Market Risk | 53 | 54 |

Technical Analysis | 73 | 79 |

Fundamental Analysis | 82 | 67 |

Risk Unsystematic | 42 | 45 |

### Prediction Confidence Score

## References

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## Frequently Asked Questions

Q: What is the prediction methodology for AXP stock?A: AXP stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Lasso Regression

Q: Is AXP stock a buy or sell?

A: The dominant strategy among neural network is to Hold AXP Stock.

Q: Is American Express stock a good investment?

A: The consensus rating for American Express is Hold and assigned short-term B1 & long-term B1 forecasted stock rating.

Q: What is the consensus rating of AXP stock?

A: The consensus rating for AXP is Hold.

Q: What is the prediction period for AXP stock?

A: The prediction period for AXP is (n+6 month)