Plains All American Pipeline Stock Forecast: An Algorithmic Analysis (PAA)
Plains All American Pipeline 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 Plains All American Pipeline, a midstream MLP that specializes in the transportation and storage of crude oil, 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 Plains are included.
Plains 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 in an overreaction to the recent oil spill. This event will not have an impact on the company’s overall financial health, which is currently very strong. Midstream MLPs are strong companies to buy during times with volatile oil prices such as now, and the company has exposure in all of the major shale oil formations of note. I Know First is bullish on this stock over the next year.
