## Abstract

**We evaluate PepsiCo prediction models with Inductive Learning (ML) and Wilcoxon Rank-Sum Test ^{1,2,3,4} and conclude that the PEP stock is predictable in the short/long term. **

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy PEP stock.**

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

*Keywords:*## Key Points

- What is neural prediction?
- Stock Forecast Based On a Predictive Algorithm
- What is neural prediction?

## PEP Target Price Prediction Modeling Methodology

We consider PepsiCo Stock Decision Process with Wilcoxon Rank-Sum Test where A is the set of discrete actions of PEP 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 Î³ ∈ [0, 1] is a move factor for expectation.^{1,2,3,4}

F(Wilcoxon Rank-Sum Test)

^{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(Inductive Learning (ML)) X S(n):→ (n+1 year) $\sum _{i=1}^{n}\left({s}_{i}\right)$

n:Time series to forecast

p:Price signals of PEP 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?

## PEP Stock Forecast (Buy or Sell) for (n+1 year)

**Sample Set:**Neural Network

**Stock/Index:**PEP PepsiCo

**Time series to forecast n: 01 Sep 2022**for (n+1 year)

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy PEP 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

PepsiCo assigned short-term B3 & long-term B1 forecasted stock rating.** We evaluate the prediction models Inductive Learning (ML) with Wilcoxon Rank-Sum Test ^{1,2,3,4} and conclude that the PEP stock is predictable in the short/long term.**

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy PEP stock.**

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

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

Outlook* | B3 | B1 |

Operational Risk | 74 | 41 |

Market Risk | 35 | 48 |

Technical Analysis | 48 | 72 |

Fundamental Analysis | 52 | 41 |

Risk Unsystematic | 49 | 82 |

### Prediction Confidence Score

## References

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- A. Shapiro, W. Tekaya, J. da Costa, and M. Soares. Risk neutral and risk averse stochastic dual dynamic programming method. European journal of operational research, 224(2):375–391, 2013
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- Athey S, Imbens GW. 2017b. The state of applied econometrics: causality and policy evaluation. J. Econ. Perspect. 31:3–32
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## Frequently Asked Questions

Q: What is the prediction methodology for PEP stock?A: PEP stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Wilcoxon Rank-Sum Test

Q: Is PEP stock a buy or sell?

A: The dominant strategy among neural network is to Buy PEP Stock.

Q: Is PepsiCo stock a good investment?

A: The consensus rating for PepsiCo is Buy and assigned short-term B3 & long-term B1 forecasted stock rating.

Q: What is the consensus rating of PEP stock?

A: The consensus rating for PEP is Buy.

Q: What is the prediction period for PEP stock?

A: The prediction period for PEP is (n+1 year)