Penske Automotive Stock Forecast - Simple Exponential Smoothing

UA9 Stock  EUR 150.00  1.00  0.67%   
The Simple Exponential Smoothing forecasted value of Penske Automotive Group on the next trading day is expected to be 150.00 with a mean absolute deviation of 1.56 and the sum of the absolute errors of 93.77. Penske Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of Penske Automotive's historical fundamentals, such as revenue growth or operating cash flow patterns.
  
Penske Automotive simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Penske Automotive Group are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Penske Automotive prices get older.

Penske Automotive Simple Exponential Smoothing Price Forecast For the 24th of December

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Penske Automotive Group on the next trading day is expected to be 150.00 with a mean absolute deviation of 1.56, mean absolute percentage error of 4.68, and the sum of the absolute errors of 93.77.
Please note that although there have been many attempts to predict Penske 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 Penske Automotive's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Penske Automotive Stock Forecast Pattern

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Penske Automotive Forecasted Value

In the context of forecasting Penske Automotive's 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. Penske Automotive's downside and upside margins for the forecasting period are 148.54 and 151.46, respectively. We have considered Penske Automotive's 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
150.00
148.54
Downside
150.00
Expected Value
151.46
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Penske Automotive stock data series using in forecasting. Note that when a statistical model is used to represent Penske Automotive 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 Criteria117.8152
BiasArithmetic mean of the errors -0.1025
MADMean absolute deviation1.5628
MAPEMean absolute percentage error0.0106
SAESum of the absolute errors93.77
This simple exponential smoothing model begins by setting Penske Automotive Group forecast for the second period equal to the observation of the first period. In other words, recent Penske Automotive observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Penske Automotive

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Penske Automotive. 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
148.55150.00151.45
Details
Intrinsic
Valuation
LowRealHigh
147.78149.23150.68
Details

Other Forecasting Options for Penske Automotive

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

Penske Automotive 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 Penske Automotive stock to make a market-neutral strategy. Peer analysis of Penske Automotive could also be used in its relative valuation, which is a method of valuing Penske Automotive by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Penske Automotive 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 Penske Automotive's 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 Penske Automotive's current price.

Penske Automotive Market Strength Events

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

Penske Automotive Risk Indicators

The analysis of Penske Automotive's 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 Penske Automotive's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting penske 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.

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Additional Information and Resources on Investing in Penske Stock

When determining whether Penske Automotive is a strong investment it is important to analyze Penske Automotive's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Penske Automotive's future performance. For an informed investment choice regarding Penske Stock, refer to the following important reports:
Check out Historical Fundamental Analysis of Penske Automotive to cross-verify your projections.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Please note, there is a significant difference between Penske Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Penske Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penske Automotive's 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.