3M Stock Forecast - Triple Exponential Smoothing
| MMM Stock | USD 91.30 0.01 0.01% |
The Triple Exponential Smoothing forecasted value of 3M Company on the next trading day is expected to be 91.55 with a mean absolute deviation of 1.25 and the sum of the absolute errors of 73.57. 3M Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast 3M stock prices and determine the direction of 3M Company's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of 3M's historical fundamentals, such as revenue growth or operating cash flow patterns. Although 3M's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of 3M's systematic risk associated with finding meaningful patterns of 3M fundamentals over time.
Check out Historical Fundamental Analysis of 3M to cross-verify your projections. 3M |
Open Interest Against 2024-04-19 3M Option Contracts
Although open interest is a measure utilized in the options markets, it could be used to forecast 3M's spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest in 3M's options reflects these daily shifts, investors could use the patterns of these changes to develop long and short-term trading strategies for 3M stock based on available contracts left at the end of a trading day.
Please note that to derive more accurate forecasting about market movement from the current 3M's open interest, investors have to compare it to 3M's spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of 3M is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in 3M. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.
Most investors in 3M cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the 3M's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets 3M's price structures and extracts relationships that further increase the generated results' accuracy.
Triple exponential smoothing for 3M - also known as the Winters method - is a refinement of the popular double exponential smoothing model with the addition of periodicity (seasonality) component. Simple exponential smoothing technique works best with data where there are no trend or seasonality components to the data. When 3M 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 trend in 3M price movement. However, neither of these exponential smoothing models address any seasonality of 3M Company. 3M Triple Exponential Smoothing Price Forecast For the 16th of April 2024
Given 90 days horizon, the Triple Exponential Smoothing forecasted value of 3M Company on the next trading day is expected to be 91.55 with a mean absolute deviation of 1.25, mean absolute percentage error of 4.22, and the sum of the absolute errors of 73.57.Please note that although there have been many attempts to predict 3M 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 3M's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
3M Stock Forecast Pattern
| Backtest 3M | 3M Price Prediction | Buy or Sell Advice |
3M Forecasted Value
In the context of forecasting 3M'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. 3M's downside and upside margins for the forecasting period are 89.31 and 93.78, respectively. We have considered 3M'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.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Triple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of 3M stock data series using in forecasting. Note that when a statistical model is used to represent 3M 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 | Huge |
| Bias | Arithmetic mean of the errors | 0.2099 |
| MAD | Mean absolute deviation | 1.2469 |
| MAPE | Mean absolute percentage error | 0.015 |
| SAE | Sum of the absolute errors | 73.5662 |
Predictive Modules for 3M
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as 3M Company. 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.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of 3M's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Other Forecasting Options for 3M
For every potential investor in 3M, whether a beginner or expert, 3M's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. 3M Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in 3M. Basic forecasting techniques help filter out the noise by identifying 3M's price trends.3M 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 3M stock to make a market-neutral strategy. Peer analysis of 3M could also be used in its relative valuation, which is a method of valuing 3M by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
3M Company 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 3M'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 3M's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
3M Market Strength Events
Market strength indicators help investors to evaluate how 3M stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading 3M shares will generate the highest return on investment. By undertsting and applying 3M stock market strength indicators, traders can identify 3M Company entry and exit signals to maximize returns.
3M Risk Indicators
The analysis of 3M'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 3M's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting 3m 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 | 1.34 | |||
| Semi Deviation | 2.32 | |||
| Standard Deviation | 2.19 | |||
| Variance | 4.78 | |||
| Downside Variance | 6.02 | |||
| Semi Variance | 5.39 | |||
| Expected Short fall | (1.32) |
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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Try AI Portfolio ArchitectCheck out Historical Fundamental Analysis of 3M to cross-verify your projections. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Complementary Tools for 3M Stock analysis
When running 3M's price analysis, check to measure 3M's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 3M is operating at the current time. Most of 3M's value examination focuses on studying past and present price action to predict the probability of 3M's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 3M's price. Additionally, you may evaluate how the addition of 3M to your portfolios can decrease your overall portfolio volatility.
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Is 3M's industry 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 3M. If investors know 3M 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 3M 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 0.744 | Dividend Share 6 | Earnings Share (12.63) | Revenue Per Share 59.002 | Quarterly Revenue Growth (0.01) |
The market value of 3M Company is measured differently than its book value, which is the value of 3M that is recorded on the company's balance sheet. Investors also form their own opinion of 3M's value that differs from its market value or its book value, called intrinsic value, which is 3M's 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 3M's market value can be influenced by many factors that don't directly affect 3M's 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 3M's value and its price as these two are different measures arrived at by different means. Investors typically determine if 3M is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 3M'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.