In the finance world stock trading is one of the most important activities. Stock market prediction is an act of trying to determine the future value of a stock other financial instrument traded on a financial exchange. This paper explains the prediction of a stock using Machine Learning. The technical and fundamental or the time series analysis is used by the most of the stockbrokers while making the stock predictions.** We evaluate IBM prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Multiple Regression ^{1,2,3,4} and conclude that the IBM stock is predictable in the short/long term. **

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold IBM stock.**

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

*Keywords:*## Key Points

- How do predictive algorithms actually work?
- What are the most successful trading algorithms?
- How do predictive algorithms actually work?

## IBM Target Price Prediction Modeling Methodology

Nowadays, people show more and more enthusiasm for applying machine learning methods to finance domain. Many scholars and investors are trying to discover the mystery behind the stock market by applying deep learning. This thesis compares four machine learning methods: long short-term memory (LSTM), gated recurrent units (GRU), support vector machine (SVM), and eXtreme gradient boosting (XGBoost) to test which one performs the best in predicting the stock trend. We consider IBM Stock Decision Process with Multiple Regression where A is the set of discrete actions of IBM 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(Multiple 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 (News Feed Sentiment Analysis)) X S(n):→ (n+8 weeks) $\sum _{i=1}^{n}\left({s}_{i}\right)$

n:Time series to forecast

p:Price signals of IBM stock

j:Nash equilibria

k:Dominated move

a:Best response for target price

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

## IBM Stock Forecast (Buy or Sell) for (n+8 weeks)

**Sample Set:**Neural Network

**Stock/Index:**IBM IBM

**Time series to forecast n: 05 Oct 2022**for (n+8 weeks)

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold IBM 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

IBM assigned short-term B2 & long-term B1 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Multiple Regression ^{1,2,3,4} and conclude that the IBM stock is predictable in the short/long term.**

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold IBM stock.**

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

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

Outlook* | B2 | B1 |

Operational Risk | 71 | 84 |

Market Risk | 59 | 34 |

Technical Analysis | 51 | 60 |

Fundamental Analysis | 33 | 41 |

Risk Unsystematic | 63 | 59 |

### Prediction Confidence Score

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## Frequently Asked Questions

Q: What is the prediction methodology for IBM stock?A: IBM stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Multiple Regression

Q: Is IBM stock a buy or sell?

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

Q: Is IBM stock a good investment?

A: The consensus rating for IBM is Hold and assigned short-term B2 & long-term B1 forecasted stock rating.

Q: What is the consensus rating of IBM stock?

A: The consensus rating for IBM is Hold.

Q: What is the prediction period for IBM stock?

A: The prediction period for IBM is (n+8 weeks)