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Is Alaska Air Group (ALK) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Alaska Air Group (ALK - Free Report) . ALK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.91, while its industry has an average P/E of 41.26. Over the last 12 months, ALK's Forward P/E has been as high as 792.87 and as low as -1,338, with a median of 15.50.
Investors should also recognize that ALK has a P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.89. Over the past year, ALK's P/B has been as high as 3.10 and as low as 1.44, with a median of 2.03.
Finally, investors should note that ALK has a P/CF ratio of 8.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.12. Over the past 52 weeks, ALK's P/CF has been as high as 18.66 and as low as -39.70, with a median of 7.66.
If you're looking for another solid Transportation - Airline value stock, take a look at Delta Air Lines (DAL - Free Report) . DAL is a # 2 (Buy) stock with a Value score of A.
Delta Air Lines also has a P/B ratio of 9.27 compared to its industry's price-to-book ratio of 4.89. Over the past year, its P/B ratio has been as high as 63.77, as low as 4.96, with a median of 10.13.
These are only a few of the key metrics included in Alaska Air Group and Delta Air Lines strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALK and DAL look like an impressive value stock at the moment.
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Is Alaska Air Group (ALK) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Alaska Air Group (ALK - Free Report) . ALK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.91, while its industry has an average P/E of 41.26. Over the last 12 months, ALK's Forward P/E has been as high as 792.87 and as low as -1,338, with a median of 15.50.
Investors should also recognize that ALK has a P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.89. Over the past year, ALK's P/B has been as high as 3.10 and as low as 1.44, with a median of 2.03.
Finally, investors should note that ALK has a P/CF ratio of 8.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.12. Over the past 52 weeks, ALK's P/CF has been as high as 18.66 and as low as -39.70, with a median of 7.66.
If you're looking for another solid Transportation - Airline value stock, take a look at Delta Air Lines (DAL - Free Report) . DAL is a # 2 (Buy) stock with a Value score of A.
Delta Air Lines also has a P/B ratio of 9.27 compared to its industry's price-to-book ratio of 4.89. Over the past year, its P/B ratio has been as high as 63.77, as low as 4.96, with a median of 10.13.
These are only a few of the key metrics included in Alaska Air Group and Delta Air Lines strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALK and DAL look like an impressive value stock at the moment.