This article was written by Gabriel Plat, a Financial Analyst at I Know First.
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Investment Selection Using AI Predictive Algorithm
May 20, 2021
In this stock market forecast evaluation report, we will examine the performance of the forecasts generated by the I Know First AI Algorithm for the top consumer stocks for long and short positions which were sent daily to our customers. Our analysis covers the time period from January 1st, 2020 until March 30th, 2021.
In this stock market forecast evaluation report, we will examine the performance of the forecasts generated by the I Know First AI Algorithm for the top consumer stocks for long and short positions which were sent daily to our customers. The Consumer Stocks Package is designed for investors and analysts who need predictions of the best-performing stocks for the whole Consumer Industry. Our analysis covers the time period from August 19th, 2019 to November 18th, 2020.
–John Cato, Chairman, President, and Chief Executive Officer
(Source: Wikimedia Commons)
On May 23, the I Know First algorithm gave the =&0=& a signal of 22.27 and predictability of .22 over a 14 day time horizon in the stocks under $20 forecast package. In accordance with the algorithm, over this time period from May 23 to June 6, the stock increased to $23.80 from a closing price of $17.46 on M ay 22, a gain of 36.33%.
Last year, Cato Fashions was one of the small specialty retailers struggling the most from the retail apocalypse. However, on May 24, CATO announced their earnings for Q1 2019 which were must better than expected and are beginning to show a promising future for the company. The company increased revenue to $23.4 million in Q1 2018 from $22.2 million in Q1 2017. This corresponded with EPS of $0.94 in comparison, an increase of 11%. Additionally, gross margin increased 1% to 39.7% thanks to lower buying and opportunity costs and higher merchandise margins. Sales decreased only 1% from last year to $236 million. However, for the 4 weeks ending on June 2, 2018, same store sales increased 9% to $77.3 million from the four week period ending on June 3, 2017. This pick up in sales is a major improvement for the specialty clothing brand as the retail industry has struggled with bringing customers into stores.
The gains of over 35% for CATO over the duration of the bullish forecast for the company highlight the accuracy of the I Know First algorithm.
Current I Know First subscribers received this bullish CATO forecast on May 23, 2018.
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I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.
