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Should Value Investors Buy Alaska Air Group (ALK) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice 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 8.52, while its industry has an average P/E of 11.22. Over the last 12 months, ALK's Forward P/E has been as high as 16.89 and as low as 7.32, with a median of 8.97.
Investors should also note that ALK holds a PEG ratio of 0.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALK's industry currently sports an average PEG of 0.45. Within the past year, ALK's PEG has been as high as 0.48 and as low as 0.44, with a median of 0.45.
Another valuation metric that we should highlight is ALK's P/B ratio of 1.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.67. Over the past 12 months, ALK's P/B has been as high as 2.04 and as low as 1.29, with a median of 1.54.
Finally, investors will want to recognize that ALK has a P/CF ratio of 13.48. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.60. Over the past year, ALK's P/CF has been as high as 14.71 and as low as 5.63, with a median of 9.24.
Another great Transportation - Airline stock you could consider is Controladora Vuela Compania de Aviacion, B. de C.V (VLRS - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Controladora Vuela Compania de Aviacion, B. de C.V holds a P/B ratio of 5.98 and its industry's price-to-book ratio is 4.67. VLRS's P/B has been as high as 8.19, as low as 3.69, with a median of 5.35 over the past 12 months.
These are just a handful of the figures considered in Alaska Air Group and Controladora Vuela Compania de Aviacion, B. de C.V's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALK and VLRS is an impressive value stock right now.
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Should Value Investors Buy Alaska Air Group (ALK) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice 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 8.52, while its industry has an average P/E of 11.22. Over the last 12 months, ALK's Forward P/E has been as high as 16.89 and as low as 7.32, with a median of 8.97.
Investors should also note that ALK holds a PEG ratio of 0.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALK's industry currently sports an average PEG of 0.45. Within the past year, ALK's PEG has been as high as 0.48 and as low as 0.44, with a median of 0.45.
Another valuation metric that we should highlight is ALK's P/B ratio of 1.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.67. Over the past 12 months, ALK's P/B has been as high as 2.04 and as low as 1.29, with a median of 1.54.
Finally, investors will want to recognize that ALK has a P/CF ratio of 13.48. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.60. Over the past year, ALK's P/CF has been as high as 14.71 and as low as 5.63, with a median of 9.24.
Another great Transportation - Airline stock you could consider is Controladora Vuela Compania de Aviacion, B. de C.V (VLRS - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Controladora Vuela Compania de Aviacion, B. de C.V holds a P/B ratio of 5.98 and its industry's price-to-book ratio is 4.67. VLRS's P/B has been as high as 8.19, as low as 3.69, with a median of 5.35 over the past 12 months.
These are just a handful of the figures considered in Alaska Air Group and Controladora Vuela Compania de Aviacion, B. de C.V's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALK and VLRS is an impressive value stock right now.