GlaxoSmithKline Stock Forecast: An Algorithmic Analysis

GlaxoSmithKline 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 published a bullish article on GlaxoSmithKline, a pharmaceutical company incorporated in the UK, on Seeking Alpha. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for GSK are included.

Forecast

GSK is among the algorithm’s top stock picks for both time horizons. The signal strengths are both exceptionally strong, especially for the one-year time horizons. The predictabilities are also impressive, indicating that the algorithm has had success predicting the movement of the stock price in the past.

The bullish algorithmic analysis makes sense considering the company’s stock price has fallen so much over the past year in reaction to declines in the company’s respiratory business. The stock price should climb higher in the next year as sales in this business start growing again in 2016, and GSK diversifies the business to deemphasize its reliance on Advocair. Along with an extremely impressive dividend yield and favorable valuation, now is a great time to invest in this company.