Quick Win by the Algorithm: Yelp’s Price Target Risen

Quick Win by the Algorithm

On December 23, 2016, the I Know First algorithm had predicted a bullish forecast for Yelp Inc. (YELP). YELP had a signal of 20.87 and a predictability of 0.2. In accordance with the algorithm, the company reported long-position capital gains of 4.5% experiencing a quick win by the algorithm.

Quick Win

Yelp Inc. (YELP) is a company that hosts yelp.com and the mobile app Yelp, which serve as crowd-sourcing review services for local businesses including restaurants, bars, and small shops. Yelp also hosts SeatMe, which is an online service that allows you to make restaurant reservations, and Eat24, an online food delivery service. The company was founded in 2004 and is headquartered in San Francisco, California.

quick winYelp appears to have risen the past 3 trading days based on two factors: high trading volume and MKM Partners new price target for Yelp.

On December 27, 2016, the stock traded 4.8 million shares, compared to an average of 1.8 million shares traded daily since last month.  Although increasing volume of trade does not necessarily guarantee the stock will rise, however this could bring attention among investors in the market.

MKM Partners reissued their buy rating for Yelp and increased their price target to $48 per share.  This is approx. 20% in potential increase from today’s stock price.  Despite desktop site traffic slowing down, the MKM Partners may see more growth in the company’s future.  In a previous article from I Know First, Yelp experienced a high growth rate from its local ad revenue compared to last year.

This bullish forecast on Yelp was sent to current I Know First subscribers on December 23rd, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

Missed the latest trend? Looking for the next best market opportunity? Find out today’s stock forecast based on our advanced self-learning algorithm