FMX Fomento Economico Mexicano S.A.B. de C.V. Common Stock

Outlook: Fomento Economico Mexicano S.A.B. de C.V. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : HoldBuy
Time series to forecast n: 27 Mar 2023 for (n+3 month)
Methodology : Transfer Learning (ML)

Abstract

Fomento Economico Mexicano S.A.B. de C.V. Common Stock prediction model is evaluated with Transfer Learning (ML) and Multiple Regression^1,2,3,4 and it is concluded that the FMX stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: HoldBuy

Key Points

1. Stock Rating
2. How do predictive algorithms actually work?
3. Stock Forecast Based On a Predictive Algorithm

FMX Target Price Prediction Modeling Methodology

We consider Fomento Economico Mexicano S.A.B. de C.V. Common Stock Decision Process with Transfer Learning (ML) where A is the set of discrete actions of FMX 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= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Transfer Learning (ML)) X S(n):→ (n+3 month) $\sum _{i=1}^n\left(s_i\right)$

n:Time series to forecast

p:Price signals of FMX stock

j:Nash equilibria (Neural Network)

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?

FMX Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: FMX Fomento Economico Mexicano S.A.B. de C.V. Common Stock
Time series to forecast n: 27 Mar 2023 for (n+3 month)

According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: HoldBuy

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 (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for Fomento Economico Mexicano S.A.B. de C.V. Common Stock

1. An entity shall assess whether contractual cash flows are solely payments of principal and interest on the principal amount outstanding for the currency in which the financial asset is denominated.
2. For example, an entity may use this condition to designate financial liabilities as at fair value through profit or loss if it meets the principle in paragraph 4.2.2(b) and the entity has financial assets and financial liabilities that share one or more risks and those risks are managed and evaluated on a fair value basis in accordance with a documented policy of asset and liability management. An example could be an entity that has issued 'structured products' containing multiple embedded derivatives and manages the resulting risks on a fair value basis using a mix of derivative and non-derivative financial instruments
3. Sales that occur for other reasons, such as sales made to manage credit concentration risk (without an increase in the assets' credit risk), may also be consistent with a business model whose objective is to hold financial assets in order to collect contractual cash flows. In particular, such sales may be consistent with a business model whose objective is to hold financial assets in order to collect contractual cash flows if those sales are infrequent (even if significant in value) or insignificant in value both individually and in aggregate (even if frequent). If more than an infrequent number of such sales are made out of a portfolio and those sales are more than insignificant in value (either individually or in aggregate), the entity needs to assess whether and how such sales are consistent with an objective of collecting contractual cash flows. Whether a third party imposes the requirement to sell the financial assets, or that activity is at the entity's discretion, is not relevant to this assessment. An increase in the frequency or value of sales in a particular period is not necessarily inconsistent with an objective to hold financial assets in order to collect contractual cash flows, if an entity can explain the reasons for those sales and demonstrate why those sales do not reflect a change in the entity's business model. In addition, sales may be consistent with the objective of holding financial assets in order to collect contractual cash flows if the sales are made close to the maturity of the financial assets and the proceeds from the sales approximate the collection of the remaining contractual cash flows.
4. An entity shall assess separately whether each subgroup meets the requirements in paragraph 6.6.1 to be an eligible hedged item. If any subgroup fails to meet the requirements in paragraph 6.6.1, the entity shall discontinue hedge accounting prospectively for the hedging relationship in its entirety. An entity also shall apply the requirements in paragraphs 6.5.8 and 6.5.11 to account for ineffectiveness related to the hedging relationship in its entirety.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Fomento Economico Mexicano S.A.B. de C.V. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Fomento Economico Mexicano S.A.B. de C.V. Common Stock prediction model is evaluated with Transfer Learning (ML) and Multiple Regression^1,2,3,4 and it is concluded that the FMX stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: HoldBuy

FMX Fomento Economico Mexicano S.A.B. de C.V. Common Stock Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba1	Ba1
Income Statement	B3	Ba3
Balance Sheet	Baa2	B2
Leverage Ratios	C	Baa2
Cash Flow	B3	C
Rates of Return and Profitability	B1	Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 81 out of 100 with 784 signals.

References

1. Burkov A. 2019. The Hundred-Page Machine Learning Book. Quebec City, Can.: Andriy Burkov
2. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Short/Long Term Stocks: FOX Stock Forecast. AC Investment Research Journal, 101(3).
3. Alexander, J. C. Jr. (1995), "Refining the degree of earnings surprise: A comparison of statistical and analysts' forecasts," Financial Review, 30, 469–506.
4. Ashley, R. (1983), "On the usefulness of macroeconomic forecasts as inputs to forecasting models," Journal of Forecasting, 2, 211–223.
5. Hill JL. 2011. Bayesian nonparametric modeling for causal inference. J. Comput. Graph. Stat. 20:217–40
6. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
7. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Is FFBC Stock Buy or Sell?(Stock Forecast). AC Investment Research Journal, 101(3).

Frequently Asked Questions

Q: What is the prediction methodology for FMX stock?
A: FMX stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Multiple Regression
Q: Is FMX stock a buy or sell?
A: The dominant strategy among neural network is to HoldBuy FMX Stock.
Q: Is Fomento Economico Mexicano S.A.B. de C.V. Common Stock stock a good investment?
A: The consensus rating for Fomento Economico Mexicano S.A.B. de C.V. Common Stock is HoldBuy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of FMX stock?
A: The consensus rating for FMX is HoldBuy.
Q: What is the prediction period for FMX stock?
A: The prediction period for FMX is (n+3 month)

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