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In contrast, ML offers the ability to analyze large datasets and uncover intricate patterns, presenting a data-driven alternative for stock selection and portfolio optimization. A comprehensive predictive framework was developed, integrating traditional financial ratios with novel features derived from value investing principles and technical analysis. Several ML models \u2014 Random Forest, Long Short-Term Memory (LSTM), and Support Vector Machines \u2014 were assessed for their ability to predict high-return stocks. Performance metrics, including accuracy, precision, and recall, were used to evaluate model effectiveness. Among the models tested, the LSTM demonstrated the highest accuracy at 0.81, proving its robustness in identifying undervalued stocks. This research contributes to the growing body of literature on ML in finance by offering a practical framework that bridges theoretical concepts with real-world applications. The study also emphasizes the importance of refining ML algorithms to improve model interpretability and transparency, crucial for fostering trust in these systems. Future research should explore the use of ensemble methods and alternative data sources to further enhance prediction accuracy, while addressing challenges related to accountability in ML-driven investment strategies. This work advances the conversation around algorithmic trading and the future of data-driven finance. <\/jats:p>","DOI":"10.1142\/s0219622025500336","type":"journal-article","created":{"date-parts":[[2025,2,11]],"date-time":"2025-02-11T10:59:20Z","timestamp":1739271560000},"page":"2163-2188","source":"Crossref","is-referenced-by-count":1,"title":["Predictive Modeling for Identifying Undervalued Stocks Using Machine Learning"],"prefix":"10.1142","volume":"24","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-7632-2044","authenticated-orcid":false,"given":"Narongsak","family":"Sukma","sequence":"first","affiliation":[{"name":"Faculty of Science, Naresuan University, Phitsanulok, Thailand"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-4660-4590","authenticated-orcid":false,"given":"Chakkrit Snae","family":"Namahoot","sequence":"additional","affiliation":[{"name":"Faculty of Science, Naresuan University, Phitsanulok, Thailand"},{"name":"Center of Excellence in Nonlinear Analysis and Optimization, Faculty of Science, Naresuan University, Phitsanulok, Thailand"}]}],"member":"219","published-online":{"date-parts":[[2025,3,12]]},"reference":[{"key":"S0219622025500336BIB001","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2021.03.023"},{"key":"S0219622025500336BIB002","doi-asserted-by":"publisher","DOI":"10.1007\/s10614-023-10449-5"},{"key":"S0219622025500336BIB003","doi-asserted-by":"publisher","DOI":"10.1142\/S0219622021400010"},{"key":"S0219622025500336BIB004","doi-asserted-by":"publisher","DOI":"10.1109\/ACCESS.2020.2969293"},{"issue":"6","key":"S0219622025500336BIB005","first-page":"458","volume":"13","author":"Mensouri D.","year":"2022","journal-title":"International Journal of Advanced Computer Science and Applications (IJACSA)"},{"key":"S0219622025500336BIB006","doi-asserted-by":"publisher","DOI":"10.1016\/j.engappai.2023.106065"},{"key":"S0219622025500336BIB007","doi-asserted-by":"publisher","DOI":"10.1016\/j.suscom.2021.100532"},{"key":"S0219622025500336BIB008","doi-asserted-by":"publisher","DOI":"10.1016\/j.eswa.2021.114767"},{"key":"S0219622025500336BIB009","doi-asserted-by":"publisher","DOI":"10.1016\/j.neucom.2018.12.012"},{"key":"S0219622025500336BIB010","doi-asserted-by":"publisher","DOI":"10.1016\/j.micpro.2020.103628"},{"key":"S0219622025500336BIB011","doi-asserted-by":"publisher","DOI":"10.1007\/s12559-019-9626-9"},{"key":"S0219622025500336BIB012","doi-asserted-by":"publisher","DOI":"10.1016\/j.chb.2018.09.027"},{"key":"S0219622025500336BIB013","doi-asserted-by":"publisher","DOI":"10.1002\/9781118258415"},{"key":"S0219622025500336BIB014","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-405X(98)00026-9"},{"key":"S0219622025500336BIB015","doi-asserted-by":"publisher","DOI":"10.1016\/j.pacfin.2020.101262"},{"key":"S0219622025500336BIB016","doi-asserted-by":"publisher","DOI":"10.4236\/tel.2018.83025"},{"volume-title":"Modern Portfolio Theory and Investment Analysis","year":"2009","author":"Elton E. 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