*AC Investment Research empowers individual investors to make better trading decisions by providing machine learning based objective stock market analysis and forecast.

Buy, sell or hold: UPS Stock Forecast

Impact of many factors on the stock prices makes the stock prediction a difficult and highly complicated task. In this paper, machine learning techniques have been applied for the stock price prediction in order to overcome such difficulties. In the implemented work, five models have been developed and their performances are compared in predicting the stock market trends. We evaluate United Parcel Service prediction models with Transductive Learning (ML) and Lasso Regression1,2,3,4 and conclude that the UPS stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell UPS stock.


Keywords: UPS, United Parcel Service, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. What is a prediction confidence?
  2. How useful are statistical predictions?
  3. How do predictive algorithms actually work?

UPS Target Price Prediction Modeling Methodology

Predictions on stock market prices are a great challenge due to the fact that it is an immensely complex, chaotic and dynamic environment. There are many studies from various areas aiming to take on that challenge and Machine Learning approaches have been the focus of many of them. There are many examples of Machine Learning algorithms been able to reach satisfactory results when doing that type of prediction. This article studies the usage of LSTM networks on that scenario, to predict future trends of stock prices based on the price history, alongside with technical analysis indicators. We consider United Parcel Service Stock Decision Process with Lasso Regression where A is the set of discrete actions of UPS 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= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Transductive Learning (ML)) X S(n):→ (n+4 weeks) R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of UPS 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?

UPS Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: UPS United Parcel Service
Time series to forecast n: 16 Oct 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell UPS 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

United Parcel Service assigned short-term Ba2 & long-term B1 forecasted stock rating. We evaluate the prediction models Transductive Learning (ML) with Lasso Regression1,2,3,4 and conclude that the UPS stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell UPS stock.

Financial State Forecast for UPS Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba2B1
Operational Risk 3760
Market Risk8152
Technical Analysis5790
Fundamental Analysis7364
Risk Unsystematic9032

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 510 signals.

References

  1. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  2. Imai K, Ratkovic M. 2013. Estimating treatment effect heterogeneity in randomized program evaluation. Ann. Appl. Stat. 7:443–70
  3. S. Bhatnagar, R. Sutton, M. Ghavamzadeh, and M. Lee. Natural actor-critic algorithms. Automatica, 45(11): 2471–2482, 2009
  4. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  5. Greene WH. 2000. Econometric Analysis. Upper Saddle River, N J: Prentice Hall. 4th ed.
  6. Y. Le Tallec. Robust, risk-sensitive, and data-driven control of Markov decision processes. PhD thesis, Massachusetts Institute of Technology, 2007.
  7. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
Frequently Asked QuestionsQ: What is the prediction methodology for UPS stock?
A: UPS stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Lasso Regression
Q: Is UPS stock a buy or sell?
A: The dominant strategy among neural network is to Sell UPS Stock.
Q: Is United Parcel Service stock a good investment?
A: The consensus rating for United Parcel Service is Sell and assigned short-term Ba2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of UPS stock?
A: The consensus rating for UPS is Sell.
Q: What is the prediction period for UPS stock?
A: The prediction period for UPS is (n+4 weeks)

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