Cummins Stock Forecast - 20 Period Moving Average
| CMI Stock | USD 375.27 2.65 0.71% |
The 20 Period Moving Average forecasted value of Cummins on the next trading day is expected to be 354.56 with a mean absolute deviation of 14.25 and the sum of the absolute errors of 598.53. Cummins Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of Cummins' historical fundamentals, such as revenue growth or operating cash flow patterns.
Cummins |
Cummins 20 Period Moving Average Price Forecast For the 27th of November
Given 90 days horizon, the 20 Period Moving Average forecasted value of Cummins on the next trading day is expected to be 354.56 with a mean absolute deviation of 14.25, mean absolute percentage error of 270.32, and the sum of the absolute errors of 598.53.Please note that although there have been many attempts to predict Cummins 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 Cummins' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Cummins Stock Forecast Pattern
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Cummins Forecasted Value
In the context of forecasting Cummins' 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. Cummins' downside and upside margins for the forecasting period are 352.95 and 356.18, respectively. We have considered Cummins' 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.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the 20 Period Moving Average forecasting method's relative quality and the estimations of the prediction error of Cummins stock data series using in forecasting. Note that when a statistical model is used to represent Cummins 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.| AIC | Akaike Information Criteria | 88.7904 |
| Bias | Arithmetic mean of the errors | -13.4176 |
| MAD | Mean absolute deviation | 14.2508 |
| MAPE | Mean absolute percentage error | 0.0411 |
| SAE | Sum of the absolute errors | 598.534 |
Predictive Modules for Cummins
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cummins. 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.Other Forecasting Options for Cummins
For every potential investor in Cummins, whether a beginner or expert, Cummins' price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Cummins Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Cummins. Basic forecasting techniques help filter out the noise by identifying Cummins' price trends.Cummins 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 Cummins stock to make a market-neutral strategy. Peer analysis of Cummins could also be used in its relative valuation, which is a method of valuing Cummins by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Cummins 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 Cummins' 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 Cummins' current price.| Cycle Indicators | ||
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Cummins Market Strength Events
Market strength indicators help investors to evaluate how Cummins stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cummins shares will generate the highest return on investment. By undertsting and applying Cummins stock market strength indicators, traders can identify Cummins entry and exit signals to maximize returns.
Cummins Risk Indicators
The analysis of Cummins' 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 Cummins' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting cummins 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.
| Mean Deviation | 1.09 | |||
| Semi Deviation | 0.6944 | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.56 | |||
| Downside Variance | 0.9178 | |||
| Semi Variance | 0.4822 | |||
| Expected Short fall | (1.44) |
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 Cummins offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cummins' 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 Cummins Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cummins Stock:Check out Historical Fundamental Analysis of Cummins to cross-verify your projections. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Construction Machinery & Heavy Transportation Equipment 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 Cummins. If investors know Cummins 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 Cummins 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 0.277 | Dividend Share 6.86 | Earnings Share 15.28 | Revenue Per Share 245.499 | Quarterly Revenue Growth 0.003 |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' 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 Cummins' market value can be influenced by many factors that don't directly affect Cummins' 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 Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' 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.