Abercrombie and Fitch Stock Forecast: Following The Leader- Insider Trading As A Good Sign

Abercrombie and Fitch Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First has had success predicting the movement of Abercrombie and Fitch’s stock price in the past. In this three-month forecast from May 23rd, Abercrombie and Fitch had a bullish signal with a signal strength of 65.68 and a predictability indicator of 0.52. In accordance with the algorithm’s prediction, the stock price increased by 7.55% during that time.

 abercrombie and fitch stock forecast

(Figure 1: ANF forecast March 23rd ’15)

Additionally, on May 26th, I Know First published a bullish article on Abercrombie and FItch stock which was against the consensus of analysts at the time. Since that time ANF has increased by 2.64%.

More recently, I Know First published a bullish article on Abercrombie and Fitch on Seeking Alpha. Having explained how I Know First’s algorithm works and providing an example of its success in the past, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecast for Abercrombie and Fitch are included.

Abercrombie and Fitch Stock Forecast

(Figure 3: ANF forecast 9th June ’15)

The above forecast is the most-recent forecast from June 9th 2015 and are for the long-term periods of three months and one year. The forecasts are highly bullish, with strong signal strengths of 69.74 and 143.69 respectably with predictability ratings of 0.61 and 063. The algorithm correlates with the fundamental analysis where Abercrombie & Fitch executives have implemented a myriad of strategies to revive their brand and the sweeping changes made both inside and outside the company give investors room for optimism.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Gilead Sciences. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.