# Profitability Analysis in Stock Investment Using an LSTM-Based Deep Learning Model

arXiv: https://arxiv.org/abs/2104.06259 · HTML: https://mlsanity.com/paper/2104.06259/

## Key facts

- Cited by 11 papers in the map (data through 14 Oct 2026).
- Builds on 3 of its 15 references that are in the map.
- First posted on arXiv 6 Apr 2021.

## Builds on (most cited first, 3 of 3)

- [Stock Price Prediction Using Machine Learning and LSTM-Based Deep Learning Models](https://mlsanity.com/paper/2009.10819/) (2020)
- [A Robust Predictive Model for Stock Price Prediction Using Deep Learning and Natural Language Processing](https://mlsanity.com/paper/1912.07700/) (2019)
- [Stock Price Prediction Using CNN and LSTM-Based Deep Learning Models](https://mlsanity.com/paper/2010.13891/) (2020)

## Built on by (most cited first, 11 of 11)

- [Volatility Modeling of Stocks from Selected Sectors of the Indian Economy Using GARCH](https://mlsanity.com/paper/2105.13898/) (2021)
- [Stock Portfolio Optimization Using a Deep Learning LSTM Model](https://mlsanity.com/paper/2111.04709/) (2021)
- [Design and Analysis of Robust Deep Learning Models for Stock Price Prediction](https://mlsanity.com/paper/2106.09664/) (2021)
- [Stock Price Prediction Using Time Series, Econometric, Machine Learning, and Deep Learning Models](https://mlsanity.com/paper/2111.01137/) (2021)
- [Analysis of Sectoral Profitability of the Indian Stock Market Using an LSTM Regression Model](https://mlsanity.com/paper/2111.04976/) (2021)
- [Optimum Risk Portfolio and Eigen Portfolio: A Comparative Analysis Using Selected Stocks from the Indian Stock Market](https://mlsanity.com/paper/2107.11371/) (2021)
- [Machine Learning in Finance-Emerging Trends and Challenges](https://mlsanity.com/paper/2110.11999/) (2021)
- [A Comparative Analysis of Portfolio Optimization Using Mean-Variance, Hierarchical Risk Parity, and Reinforcement Learning Approaches on the Indian Stock Market](https://mlsanity.com/paper/2305.17523/) (2023)
- [Portfolio Optimization: A Comparative Study](https://mlsanity.com/paper/2307.05048/) (2023)
- [Performance Evaluation of Equal-Weight Portfolio and Optimum Risk Portfolio on Indian Stocks](https://mlsanity.com/paper/2309.13696/) (2023)
- [Exploring Sectoral Profitability in the Indian Stock Market Using Deep Learning](https://mlsanity.com/paper/2407.01572/) (2024)

## Abstract (arXiv)

Designing robust systems for precise prediction of future prices of stocks has always been considered a very challenging research problem. Even more challenging is to build a system for constructing an optimum portfolio of stocks based on the forecasted future stock prices. We present a deep learning-based regression model built on a long-and-short-term memory network (LSTM) network that automatically scraps the web and extracts historical stock prices based on a stock's ticker name for a specified pair of start and end dates, and forecasts the future stock prices. We deploy the model on 75 significant stocks chosen from 15 critical sectors of the Indian stock market. For each of the stocks, the model is evaluated for its forecast accuracy. Moreover, the predicted values of the stock prices are used as the basis for investment decisions, and the returns on the investments are computed. Extensive results are presented on the performance of the model. The analysis of the results demonstrates the efficacy and effectiveness of the system and enables us to compare the profitability of the sectors from the point of view of the investors in the stock market.