Research: Prediction of Growth Stocks Using Machine Learning Algorithms
Awards: Somers Science Fair 2022
Mentor: Manyar Raza / Kensho
Research Location: Yonkers, NY
Abstract:
Machine learning is a subset of artificial intelligence that provides systems the ability to automatically learn and improve from experience without being explicitly programmed. Being active in the stock market is one of the most sophisticated ways that people generate income. However, depending on the type of investments made, there are different levels of risks involved. This is where machine learning comes into play and could aid in professional investors making higher gains in the stock market. Investing in growth stocks is a way that professional investors make higher gains in the market while also taking on more risk as well. Some intended methods that will be utilized for this research are the integration of certain characteristics that are reliably measured in growth stocks. These are key attributes and variables that will be used for these graphs and models that will be formulated. Some of these characteristics include high price-to-earnings ratio (P/E), possessing a higher growth rate than the average stock market, paying little to no dividends, and generating substantial revenues through capital gains. Another intended method that may be used for this research are certain classifiers, one of them being Linear Regressions. The algorithm will essentially use the characteristics of growth stocks as independent variables to predict the relations between those variables and certain trends and patterns that occur in the stock market. Large amounts of data will be scraped from certain websites and APIS like Yahoo Finance. The rate at which investors pick a winning growth stock in the stock market could now be increased due to investors utilizing this model. This system was able to tell investors based on the indicators chosen whether or not they should buy or sell a particular growth stock.
About this Scientist:
My name is Emamoke Rogers Jr., and I am a junior attending Yonkers High School who is a part of the Robotics Club, Key Club, and Crochet Club. I'm an aspiring software engineer that plans to major in computer science in college. My research topic is the Prediction of Growth Stocks Using a Machine Learning Algorithm.