Abstract
We evaluate PepsiCo prediction models with Inductive Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 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.
Keywords: PEP, PepsiCo, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.
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 γ ∈ [0, 1] is a move factor for expectation.1,2,3,4
F(Wilcoxon Rank-Sum Test)5,6,7= X R(Inductive Learning (ML)) X S(n):→ (n+1 year)
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 NetworkStock/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 Test1,2,3,4 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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- Hastie T, Tibshirani R, Wainwright M. 2015. Statistical Learning with Sparsity: The Lasso and Generalizations. New York: CRC Press
- Athey S, Bayati M, Imbens G, Zhaonan Q. 2019. Ensemble methods for causal effects in panel data settings. NBER Work. Pap. 25675
- 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
- Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
- Athey S, Imbens GW. 2017b. The state of applied econometrics: causality and policy evaluation. J. Econ. Perspect. 31:3–32
- Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
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)