LGI Homes Stock Forecast - 8 Period Moving Average

LGIH Stock  USD 99.85  2.54  2.48%   
The 8 Period Moving Average forecasted value of LGI Homes on the next trading day is expected to be 104.09 with a mean absolute deviation of 3.83 and the sum of the absolute errors of 207.02. LGI Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of LGI Homes' historical fundamentals, such as revenue growth or operating cash flow patterns.
  
The LGI Homes' current Asset Turnover is estimated to increase to 1.25, while Inventory Turnover is projected to decrease to 0.56. . The LGI Homes' current Net Income Applicable To Common Shares is estimated to increase to about 394.3 M, while Common Stock Shares Outstanding is projected to decrease to under 23.1 M.
An 8-period moving average forecast model for LGI Homes is based on an artificially constructed time series of LGI Homes daily prices in which the value for a trading day is replaced by the mean of that value and the values for 8 of preceding and succeeding time periods. This model is best suited for price series data that changes over time.

LGI Homes 8 Period Moving Average Price Forecast For the 15th of December 2024

Given 90 days horizon, the 8 Period Moving Average forecasted value of LGI Homes on the next trading day is expected to be 104.09 with a mean absolute deviation of 3.83, mean absolute percentage error of 19.32, and the sum of the absolute errors of 207.02.
Please note that although there have been many attempts to predict LGI Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that LGI Homes' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

LGI Homes Stock Forecast Pattern

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LGI Homes Forecasted Value

In the context of forecasting LGI Homes' Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. LGI Homes' downside and upside margins for the forecasting period are 101.82 and 106.35, respectively. We have considered LGI Homes' daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
99.85
101.82
Downside
104.09
Expected Value
106.35
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the 8 Period Moving Average forecasting method's relative quality and the estimations of the prediction error of LGI Homes stock data series using in forecasting. Note that when a statistical model is used to represent LGI Homes stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria108.2066
BiasArithmetic mean of the errors 1.1567
MADMean absolute deviation3.8337
MAPEMean absolute percentage error0.0359
SAESum of the absolute errors207.0225
The eieght-period moving average method has an advantage over other forecasting models in that it does smooth out peaks and valleys in a set of daily observations. LGI Homes 8-period moving average forecast can only be used reliably to predict one or two periods into the future.

Predictive Modules for LGI Homes

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as LGI Homes. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
97.2999.55101.81
Details
Intrinsic
Valuation
LowRealHigh
99.31101.57103.83
Details
6 Analysts
Consensus
LowTargetHigh
116.71128.25142.36
Details
Earnings
Estimates (0)
LowProjected EPSHigh
2.042.122.25
Details

Other Forecasting Options for LGI Homes

For every potential investor in LGI, whether a beginner or expert, LGI Homes' price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. LGI Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in LGI. Basic forecasting techniques help filter out the noise by identifying LGI Homes' price trends.

LGI Homes Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with LGI Homes stock to make a market-neutral strategy. Peer analysis of LGI Homes could also be used in its relative valuation, which is a method of valuing LGI Homes by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

LGI Homes Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of LGI Homes' price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of LGI Homes' current price.

LGI Homes Market Strength Events

Market strength indicators help investors to evaluate how LGI Homes stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading LGI Homes shares will generate the highest return on investment. By undertsting and applying LGI Homes stock market strength indicators, traders can identify LGI Homes entry and exit signals to maximize returns.

LGI Homes Risk Indicators

The analysis of LGI Homes' basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in LGI Homes' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting lgi stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Currently Active Assets on Macroaxis

When determining whether LGI Homes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LGI Homes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lgi Homes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lgi Homes Stock:
Check out Historical Fundamental Analysis of LGI Homes to cross-verify your projections.
For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LGI Homes. If investors know LGI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LGI Homes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.039
Earnings Share
8.36
Revenue Per Share
95.936
Quarterly Revenue Growth
0.056
Return On Assets
0.0402
The market value of LGI Homes is measured differently than its book value, which is the value of LGI that is recorded on the company's balance sheet. Investors also form their own opinion of LGI Homes' value that differs from its market value or its book value, called intrinsic value, which is LGI Homes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LGI Homes' market value can be influenced by many factors that don't directly affect LGI Homes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LGI Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if LGI Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LGI Homes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.