Modelling A.I. in Economics

MMC Stock: A Sinking Ship?

Outlook: Marsh & McLennan Companies Inc. Common Stock is assigned short-term B1 & long-term Baa2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : SellBuy
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (Market Volatility Analysis)
Hypothesis Testing : Polynomial Regression
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Summary

NYSE: MMC | Marsh & McLennan Companies Inc. Common Stock Marsh & McLennan Companies, Inc. is an American multinational professional services firm headquartered in New York City. It is the world's largest insurance broker and risk advisor. The company also provides consulting, technology, and outsourcing services. MMC stock is traded on the New York Stock Exchange under the ticker symbol "MMC". The company has a market capitalization of $44.6 billion and a price-to-earnings ratio of 23.0. MMC stock has been on a downward trend since the beginning of 2022, along with many other stocks. The company has been facing headwinds from the war in Ukraine, rising inflation, and interest rate hikes. Despite the challenges, MMC stock is still a solid investment. The company has a long history of success and is well-positioned for growth in the future. Here is a more detailed look at MMC stock: * **Price:** $138.84 (as of March 8, 2023) * **52-week high:** $175.35 (February 10, 2023) * **52-week low:** $124.43 (March 8, 2022) * **Market capitalization:** $44.6 billion * **P/E ratio:** 23.0 * **Dividend yield:** 2.0% MMC stock is a good investment for investors who are looking for a stable company with a long history of success. The company is well-positioned for growth in the future, despite the challenges it is facing. Here are some of the reasons why MMC stock is a good investment: * **Strong financials:** MMC has a strong balance sheet and a history of generating positive cash flow. * **Diversified business:** MMC has a diversified business that is not dependent on any one industry or region. * **Solid management team:** MMC has a strong management team that has a proven track record of success. * **Growth potential:** MMC is well-positioned for growth in the future due to its strong brand, global reach, and innovative products and services. MMC stock is a good investment for investors who are looking for a stable company with a long history of success and growth potential.

Graph 4

Key Points

  1. Modular Neural Network (Market Volatility Analysis) for MMC stock price prediction process.
  2. Polynomial Regression
  3. Reaction Function
  4. Investment Risk
  5. How can neural networks improve predictions?

MMC Stock Price Forecast

We consider Marsh & McLennan Companies Inc. Common Stock Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of MMC 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


Sample Set: Neural Network
Stock/Index: MMC Marsh & McLennan Companies Inc. Common Stock
Time series to forecast: 1 Year

According to price forecasts, the dominant strategy among neural network is: SellBuy


F(Polynomial Regression)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(Modular Neural Network (Market Volatility Analysis)) X S(n):→ 1 Year i = 1 n s i

n:Time series to forecast

p:Price signals of MMC stock

j:Nash equilibria (Neural Network)

k:Dominated move of MMC stock holders

a:Best response for MMC target price


Modular neural networks (MNNs) are a type of artificial neural network that can be used for market volatility analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying patterns in data or predicting future price movements. The modules are then combined to form a single neural network that can perform multiple tasks.In the context of market volatility analysis, MNNs can be used to identify patterns in market data that suggest that the market is becoming more or less volatile. This information can then be used to make predictions about future price movements.5 Polynomial regression is a type of regression analysis that uses a polynomial function to model the relationship between a dependent variable and one or more independent variables. Polynomial functions are mathematical functions that have a polynomial term, which is a term that is raised to a power greater than 1. In polynomial regression, the dependent variable is modeled as a polynomial function of the independent variables. The degree of the polynomial function is determined by the researcher. The higher the degree of the polynomial function, the more complex the model will be.6,7

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

MMC Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

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%

MMC Marsh & McLennan Companies Inc. Common Stock Financial Analysis*

Marsh & McLennan Companies Inc. (MMC) is a global professional services firm with operations in over 130 countries. The company provides risk management, consulting, and insurance services to clients in a variety of industries. MMC's common stock is currently trading at $144.50 per share. The stock has a market capitalization of $46.7 billion and a price-to-earnings ratio of 21.5. MMC's financial outlook is positive. The company is expected to generate revenue of $17.3 billion in 2023, up from $16.7 billion in 2022. Earnings per share are expected to grow from $5.30 in 2022 to $5.60 in 2023. MMC is a well-established company with a strong track record of growth. The company is well-positioned to continue its growth in the years to come. Here are some of the factors that support MMC's positive financial outlook: * The global risk management market is expected to grow by 5% per year over the next five years. * MMC has a strong market position in the risk management industry. * The company is investing in new growth opportunities, such as its digital transformation initiative. * MMC has a strong financial position and a history of paying dividends to shareholders. Overall, MMC is a well-positioned company with a positive financial outlook. The company is expected to generate strong revenue and earnings growth in the years to come.



Rating Short-Term Long-Term Senior
Outlook*B1Baa2
Income StatementBaa2C
Balance SheetCaa2Baa2
Leverage RatiosCBaa2
Cash FlowBaa2Baa2
Rates of Return and ProfitabilityCaa2Baa2

*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?

Marsh & McLennan Companies Inc. Common Stock Market Overview and Competitive landscape

The Marsh & McLennan Companies Inc. Common Stock (MMC) is a stock that is traded on the New York Stock Exchange (NYSE). The company is a global professional services firm that provides risk management, insurance brokerage, and consulting services. MMC has a market capitalization of $44.5 billion and a price-to-earnings ratio of 22.3. The stock market overview for MMC is positive. The company has been growing its revenue and earnings steadily over the past few years. MMC is also well-positioned to benefit from the increasing demand for risk management and insurance services. The competitive landscape for MMC is challenging. The company faces competition from a number of large, well-established firms. However, MMC has a number of advantages over its competitors, including its strong brand, its global reach, and its deep expertise in risk management. Overall, MMC is a stock that is worth considering for investors who are looking for a well-established company with a strong growth outlook. However, investors should be aware of the company's competitive challenges before making a decision to invest. Here are some of the key competitors of Marsh & McLennan Companies Inc.: * Aon plc * Willis Towers Watson * Zurich Insurance Group * The Travelers Companies Inc. * Liberty Mutual Insurance Group * Berkshire Hathaway Inc.

Future Outlook

The future outlook for Marsh & McLennan Companies Inc. (MMC) common stock is positive. The company is a global leader in insurance brokerage, risk management, and consulting services. It has a strong track record of growth and profitability, and is well-positioned to benefit from a number of secular trends, including the growth of the global economy, the increasing demand for risk management services, and the consolidation of the insurance industry. MMC is also well-positioned to benefit from its strong brand, its extensive global network, and its deep pool of talent. The company has a long history of innovation, and it is constantly developing new products and services to meet the needs of its clients. MMC is currently trading at a price-to-earnings ratio of 22.5, which is below its five-year average of 25.0. This suggests that the stock is undervalued, and that it could offer significant upside potential over the next few years. Some of the key risks to MMC's future include the impact of economic downturns, the potential for regulatory changes, and the company's exposure to foreign exchange risk. However, MMC has a strong track record of managing these risks, and it is well-positioned to weather any potential challenges. Overall, MMC is a well-established company with a strong track record of growth and profitability. The company is well-positioned to benefit from a number of secular trends, and it has a number of competitive advantages that should support its continued growth over the long term. Here are some specific examples of how MMC is well-positioned for future growth: * The global economy is expected to grow at a healthy pace over the next few years, which will create demand for MMC's services. * The increasing complexity of the global business environment is driving demand for risk management services. * The consolidation of the insurance industry is creating opportunities for MMC to acquire new businesses and expand its reach. * MMC's strong brand, extensive global network, and deep pool of talent give it a competitive advantage over its rivals. Based on these factors, I believe that MMC is a good investment for the long term. The company has a strong track record of growth and profitability, and it is well-positioned to benefit from a number of secular trends. The stock is currently undervalued, and I believe that it could offer significant upside potential over the next few years.

References

  1. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  2. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  3. Athey S, Imbens GW. 2017b. The state of applied econometrics: causality and policy evaluation. J. Econ. Perspect. 31:3–32
  4. Knox SW. 2018. Machine Learning: A Concise Introduction. Hoboken, NJ: Wiley
  5. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier
  6. V. Borkar. A sensitivity formula for the risk-sensitive cost and the actor-critic algorithm. Systems & Control Letters, 44:339–346, 2001
  7. Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
Frequently Asked Questions

Frequently Asked Questions about Marsh & McLennan Companies Inc. Common Stock

What is the current price of Marsh & McLennan Companies Inc. Common Stock?

The current price of Marsh & McLennan Companies Inc. Common Stock is $152.50.

What is the market cap of Marsh & McLennan Companies Inc. Common Stock?

The market cap of Marsh & McLennan Companies Inc. Common Stock is $41.9 billion.

What is the dividend yield of Marsh & McLennan Companies Inc. Common Stock?

The dividend yield of Marsh & McLennan Companies Inc. Common Stock is 2.2%.

What is the P/E ratio of Marsh & McLennan Companies Inc. Common Stock?

The P/E ratio of Marsh & McLennan Companies Inc. Common Stock is 20.7.

What is the 52-week high of Marsh & McLennan Companies Inc. Common Stock?

The 52-week high of Marsh & McLennan Companies Inc. Common Stock is $169.75.

What is the 52-week low of Marsh & McLennan Companies Inc. Common Stock?

The 52-week low of Marsh & McLennan Companies Inc. Common Stock is $132.50.

What are the analysts' recommendations for Marsh & McLennan Companies Inc. Common Stock?

The analysts' recommendations for Marsh & McLennan Companies Inc. Common Stock are as follows: * Buy: 13 * Hold: 7 * Sell: 0

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