Bright Horizons Stock Forecast - Naive Prediction

BFAM Stock  USD 93.43  0.52  0.55%   
The Naive Prediction forecasted value of Bright Horizons Family on the next trading day is expected to be 90.29 with a mean absolute deviation of 1.92 and the sum of the absolute errors of 117.29. Bright Stock Forecast is based on your current time horizon.
As of now the relative strength index (rsi) of Bright Horizons' share price is below 20 suggesting that the stock is significantly oversold. The fundamental principle of the Relative Strength Index (RSI) is to quantify the velocity at which market participants are driving the price of a financial instrument upwards or downwards.

Momentum 0

 Sell Peaked

 
Oversold
 
Overbought
The successful prediction of Bright Horizons' future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of Bright Horizons and does not consider all of the tangible or intangible factors available from Bright Horizons' fundamental data. We analyze noise-free headlines and recent hype associated with Bright Horizons Family, which may create opportunities for some arbitrage if properly timed.
Using Bright Horizons hype-based prediction, you can estimate the value of Bright Horizons Family from the perspective of Bright Horizons response to recently generated media hype and the effects of current headlines on its competitors.
The Naive Prediction forecasted value of Bright Horizons Family on the next trading day is expected to be 90.29 with a mean absolute deviation of 1.92 and the sum of the absolute errors of 117.29.

Bright Horizons after-hype prediction price

    
  USD 93.43  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Check out Historical Fundamental Analysis of Bright Horizons to cross-verify your projections.

Bright Horizons Additional Predictive Modules

Most predictive techniques to examine Bright price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Bright using various technical indicators. When you analyze Bright charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
A naive forecasting model for Bright Horizons is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Bright Horizons Family value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

Bright Horizons Naive Prediction Price Forecast For the 24th of January

Given 90 days horizon, the Naive Prediction forecasted value of Bright Horizons Family on the next trading day is expected to be 90.29 with a mean absolute deviation of 1.92, mean absolute percentage error of 6.58, and the sum of the absolute errors of 117.29.
Please note that although there have been many attempts to predict Bright 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 Bright Horizons' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Bright Horizons Stock Forecast Pattern

Backtest Bright HorizonsBright Horizons Price PredictionBuy or Sell Advice 

Bright Horizons Forecasted Value

In the context of forecasting Bright Horizons' 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. Bright Horizons' downside and upside margins for the forecasting period are 87.24 and 93.33, respectively. We have considered Bright Horizons' 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
93.43
90.29
Expected Value
93.33
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Bright Horizons stock data series using in forecasting. Note that when a statistical model is used to represent Bright Horizons 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 Criteria119.9945
BiasArithmetic mean of the errors None
MADMean absolute deviation1.9228
MAPEMean absolute percentage error0.0192
SAESum of the absolute errors117.2895
This model is not at all useful as a medium-long range forecasting tool of Bright Horizons Family. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict Bright Horizons. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for Bright Horizons

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Bright Horizons Family. 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
90.3893.4396.48
Details
Intrinsic
Valuation
LowRealHigh
64.2267.27102.77
Details
Bollinger
Band Projection (param)
LowMiddleHigh
93.80100.42107.04
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bright Horizons. Your research has to be compared to or analyzed against Bright Horizons' peers to derive any actionable benefits. When done correctly, Bright Horizons' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Bright Horizons Family.

Bright Horizons After-Hype Price Prediction Density Analysis

As far as predicting the price of Bright Horizons at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Bright Horizons or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Bright Horizons, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Bright Horizons Estimiated After-Hype Price Volatility

In the context of predicting Bright Horizons' stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Bright Horizons' historical news coverage. Bright Horizons' after-hype downside and upside margins for the prediction period are 90.38 and 96.48, respectively. We have considered Bright Horizons' daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
93.43
93.43
After-hype Price
96.48
Upside
Bright Horizons is very steady at this time. Analysis and calculation of next after-hype price of Bright Horizons Family is based on 3 months time horizon.

Bright Horizons Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as Bright Horizons is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bright Horizons backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Bright Horizons, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.06 
3.05
 0.00  
 0.00  
0 Events / Month
6 Events / Month
In 5 to 10 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
93.43
93.43
0.00 
0.00  
Notes

Bright Horizons Hype Timeline

Bright Horizons Family is currently traded for 93.43. The entity stock is not elastic to its hype. The average elasticity to hype of competition is 0.0. Bright is forecasted not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is insignificant. The immediate return on the next news is forecasted to be very small, whereas the daily expected return is currently at -0.06%. %. The volatility of related hype on Bright Horizons is about 5083.33%, with the expected price after the next announcement by competition of 93.43. About 99.0% of the company shares are held by institutions such as insurance companies. The book value of Bright Horizons was currently reported as 25.13. The company has Price/Earnings To Growth (PEG) ratio of 1.76. Bright Horizons Family had not issued any dividends in recent years. Given the investment horizon of 90 days the next forecasted press release will be in 5 to 10 days.
Check out Historical Fundamental Analysis of Bright Horizons to cross-verify your projections.

Bright Horizons Related Hype Analysis

Having access to credible news sources related to Bright Horizons' direct competition is more important than ever and may enhance your ability to predict Bright Horizons' future price movements. Getting to know how Bright Horizons' peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Bright Horizons may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
HRBHR Block(0.64)9 per month 0.00 (0.24) 1.90 (3.51) 7.69 
BOOTBoot Barn Holdings 0.47 12 per month 0.00 (0.08) 4.65 (3.56) 11.44 
ATATAtour Lifestyle Holdings 0.00 0 per month 0.00 (0.03) 5.36 (3.79) 11.35 
FTDRFrontdoor 0.12 12 per month 0.00 (0.08) 3.10 (2.86) 18.24 
WINGWingstop 0.47 4 per month 3.14  0.03  7.69 (4.51) 15.81 
LNWLight Wonder 0.12 19 per month 1.31  0.29  8.54 (2.83) 14.31 
ETSYEtsy Inc 0.00 0 per month 0.00 (0.12) 3.69 (5.03) 14.29 
MTNVail Resorts 0.47 7 per month 0.00 (0.07) 3.44 (3.39) 13.29 
MATMattel Inc 0.47 8 per month 1.89  0.06  3.98 (3.26) 8.61 
LEALear Corporation(0.88)8 per month 1.27  0.13  3.50 (2.18) 8.69 

Other Forecasting Options for Bright Horizons

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

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

Bright Horizons Market Strength Events

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

Bright Horizons Risk Indicators

The analysis of Bright Horizons' 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 Bright Horizons' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting bright 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.

Story Coverage note for Bright Horizons

The number of cover stories for Bright Horizons depends on current market conditions and Bright Horizons' risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Bright Horizons is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Bright Horizons' long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Bright Horizons Short Properties

Bright Horizons' future price predictability will typically decrease when Bright Horizons' long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Bright Horizons Family often depends not only on the future outlook of the potential Bright Horizons' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Bright Horizons' indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding58.5 M
Cash And Short Term Investments122 M
When determining whether Bright Horizons Family is a strong investment it is important to analyze Bright Horizons' 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 Bright Horizons' future performance. For an informed investment choice regarding Bright Stock, refer to the following important reports:
Check out Historical Fundamental Analysis of Bright Horizons to cross-verify your projections.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Diversified Consumer Services 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 Bright Horizons. If investors know Bright 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 Bright Horizons listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bright Horizons Family is measured differently than its book value, which is the value of Bright that is recorded on the company's balance sheet. Investors also form their own opinion of Bright Horizons' value that differs from its market value or its book value, called intrinsic value, which is Bright Horizons' 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 Bright Horizons' market value can be influenced by many factors that don't directly affect Bright Horizons' 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 Bright Horizons' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bright Horizons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bright Horizons' 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.