Sterling Construction Stock Forward View - Double Exponential Smoothing

STRL Stock  USD 415.13  4.50  1.10%   
Sterling Stock outlook is based on your current time horizon.
The relative strength momentum indicator of Sterling Construction's share price is above 70 as of now. This usually implies that the stock is becoming overbought or overvalued. The idea behind Relative Strength Index (RSI) is that it helps to track how fast people are buying or selling Sterling, making its price go up or down.

Momentum 73

 Buy Stretched

 
Oversold
 
Overbought
The successful prediction of Sterling Construction's 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 Sterling Construction and does not consider all of the tangible or intangible factors available from Sterling Construction's fundamental data. We analyze noise-free headlines and recent hype associated with Sterling Construction, which may create opportunities for some arbitrage if properly timed.
Using Sterling Construction hype-based prediction, you can estimate the value of Sterling Construction from the perspective of Sterling Construction response to recently generated media hype and the effects of current headlines on its competitors.
The Double Exponential Smoothing forecasted value of Sterling Construction on the next trading day is expected to be 415.44 with a mean absolute deviation of 9.57 and the sum of the absolute errors of 564.42.

Sterling Construction after-hype prediction price

    
  USD 416.56  
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 Sterling Construction to cross-verify your projections.
For more information on how to buy Sterling Stock please use our How to buy in Sterling Stock guide.

Sterling Construction Additional Predictive Modules

Most predictive techniques to examine Sterling price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Sterling using various technical indicators. When you analyze Sterling 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.
Double exponential smoothing - also known as Holt exponential smoothing is a refinement of the popular simple exponential smoothing model with an additional trending component. Double exponential smoothing model for Sterling Construction works best with periods where there are trends or seasonality.

Sterling Construction Double Exponential Smoothing Price Forecast For the 20th of February

Given 90 days horizon, the Double Exponential Smoothing forecasted value of Sterling Construction on the next trading day is expected to be 415.44 with a mean absolute deviation of 9.57, mean absolute percentage error of 166.79, and the sum of the absolute errors of 564.42.
Please note that although there have been many attempts to predict Sterling Stock prices using its time series forecasting, we generally do not suggest using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Sterling Construction's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Sterling Construction Stock Forecast Pattern

Backtest Sterling Construction  Sterling Construction Price Prediction  Research Analysis  

Sterling Construction Forecasted Value

In the context of forecasting Sterling Construction'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. Sterling Construction's downside and upside margins for the forecasting period are 411.64 and 419.23, respectively. We have considered Sterling Construction'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
415.13
411.64
Downside
415.44
Expected Value
419.23
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Double Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Sterling Construction stock data series using in forecasting. Note that when a statistical model is used to represent Sterling Construction 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 CriteriaHuge
BiasArithmetic mean of the errors -1.4275
MADMean absolute deviation9.5664
MAPEMean absolute percentage error0.0277
SAESum of the absolute errors564.4193
When Sterling Construction prices exhibit either an increasing or decreasing trend over time, simple exponential smoothing forecasts tend to lag behind observations. Double exponential smoothing is designed to address this type of data series by taking into account any Sterling Construction trend in the prices. So in double exponential smoothing past observations are given exponentially smaller weights as the observations get older. In other words, recent Sterling Construction observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Sterling Construction

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Sterling Construction. 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
370.18416.56420.39
Details
Intrinsic
Valuation
LowRealHigh
384.74388.57452.44
Details
Bollinger
Band Projection (param)
LowMiddleHigh
19.17414.64810.11
Details

Sterling Construction After-Hype Price Density Analysis

As far as predicting the price of Sterling Construction 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 Sterling Construction 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 Sterling Construction, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Sterling Construction Estimiated After-Hype Price Volatility

In the context of predicting Sterling Construction's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Sterling Construction's historical news coverage. Sterling Construction's after-hype downside and upside margins for the prediction period are 370.18 and 420.39, respectively. We have considered Sterling Construction's 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 compare with traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
415.13
370.18
Downside
416.56
After-hype Price
420.39
Upside
Sterling Construction is very steady at this time. Analysis and calculation of next after-hype price of Sterling Construction is based on 3 months time horizon.

Sterling Construction Stock Price Outlook Analysis

Have you ever been surprised when a price of a Company such as Sterling Construction is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Sterling Construction 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 Sterling Construction, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.52 
3.80
 0.00  
  0.10 
0 Events / Month
0 Events / Month
Within a week
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
415.13
416.56
1.28 
0.00  
Notes

Sterling Construction Hype Timeline

Sterling Construction is at this time traded for 415.13. The entity stock is not elastic to its hype. The average elasticity to hype of competition is 0.1. Sterling is projected to increase in value after the next headline, with the price projected to jump to 416.56 or above. The average volatility of media hype impact on the company the price is insignificant. The price upswing on the next news is projected to be 1.28%, whereas the daily expected return is at this time at 0.52%. The volatility of related hype on Sterling Construction is about 2065.22%, with the expected price after the next announcement by competition of 415.23. The company reported the previous year's revenue of 2.12 B. Net Income was 270.92 M with profit before overhead, payroll, taxes, and interest of 514.87 M. Given the investment horizon of 90 days the next projected press release will be within a week.
Check out Historical Fundamental Analysis of Sterling Construction to cross-verify your projections.
For more information on how to buy Sterling Stock please use our How to buy in Sterling Stock guide.

Sterling Construction Related Hype Analysis

Having access to credible news sources related to Sterling Construction's direct competition is more important than ever and may enhance your ability to predict Sterling Construction's future price movements. Getting to know how Sterling Construction's 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 Sterling Construction 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
BLDTopbuild Corp 0.00 0 per month 1.54  0.12  4.50 (2.28) 10.24 
STNStantec 0.00 0 per month 0.00 (0.07) 1.96 (1.91) 14.41 
ERJERJ Old 0.00 0 per month 1.47  0.13  3.07 (2.82) 7.33 
BLDRBuilders FirstSource 0.00 0 per month 2.14  0.04  4.67 (3.52) 17.03 
HIIHuntington Ingalls Industries 0.00 0 per month 2.27  0.22  4.34 (3.03) 16.77 
WMSAdvanced Drainage Systems 0.00 0 per month 1.07  0.12  3.31 (1.85) 9.24 
AYIAcuity Brands 0.00 0 per month 0.00 (0.1) 2.66 (2.86) 16.54 
MLIMueller Industries 0.00 0 per month 2.78  0.07  2.26 (1.65) 13.77 
TTEKTetra Tech 0.00 0 per month 2.64  0.07  4.02 (3.39) 16.69 
MTZMasTec Inc 1.84 10 per month 2.01  0.22  4.38 (4.09) 13.07 

Other Forecasting Options for Sterling Construction

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

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

Sterling Construction Market Strength Events

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

Sterling Construction Risk Indicators

The analysis of Sterling Construction'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 Sterling Construction's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting sterling 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 Sterling Construction

The number of cover stories for Sterling Construction depends on current market conditions and Sterling Construction's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Sterling Construction 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 Sterling Construction's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Sterling Construction Short Properties

Sterling Construction's future price predictability will typically decrease when Sterling Construction's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Sterling Construction often depends not only on the future outlook of the potential Sterling Construction's 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. Sterling Construction's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding31.1 M
Cash And Short Term Investments664.2 M
When determining whether Sterling Construction is a strong investment it is important to analyze Sterling Construction'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 Sterling Construction's future performance. For an informed investment choice regarding Sterling Stock, refer to the following important reports:
Check out Historical Fundamental Analysis of Sterling Construction to cross-verify your projections.
For more information on how to buy Sterling Stock please use our How to buy in Sterling Stock guide.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Construction & Engineering 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 Sterling Construction. If investors know Sterling 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. Comprehensive Sterling Construction assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Understanding Sterling Construction requires distinguishing between market price and book value, where the latter reflects Sterling's accounting equity. The concept of intrinsic value - what Sterling Construction's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Sterling Construction's price substantially above or below its fundamental value.
Please note, there is a significant difference between Sterling Construction's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sterling Construction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. In contrast, Sterling Construction's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.