Unilever 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 on Seeking Alpha a bullish article about Unilever (NYSE:UL), the company is engaged in the supply of food, home and personal care products and  operates through four segments: Personal Care, Foods, Refreshment and Home Care.

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 Unilever are included.

The stock has a relatively bullish signal for both the time horizons, indicating that the stock is currently undervalued. Over the predicted time horizons, the stock price will start climbing, which is in agreement with the fundamental analysis.

According to the present prospected plans for both the emerging markets and the product offer reshaping, as well as increasing the research in innovation, the company is getting prepared not to suffer from a sale stagnation in western economies and to catch the chance to develop its markets in eastern economies.

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 Alcoa Inc. Using this trading strategy, an investor should buy a stock if the last 5 day 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.