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Is Alaska Air Group (ALK) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Alaska Air Group (ALK - Free Report) . ALK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 10.84. Over the past 52 weeks, ALK's Forward P/E has been as high as 16.28 and as low as 7.32, with a median of 8.87.
ALK is also sporting a PEG ratio of 0.41. 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 0.44. Over the last 12 months, ALK's PEG has been as high as 0.48 and as low as 0.41, with a median of 0.43.
Investors should also recognize that ALK has a P/B ratio of 1.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.27. ALK's P/B has been as high as 2.04 and as low as 1.29, with a median of 1.54, over the past year.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines also has a P/B ratio of 2.48 compared to its industry's price-to-book ratio of 3.27. Over the past year, its P/B ratio has been as high as 4.68, as low as 1.76, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alaska Air Group and United Airlines are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALK and UAL feels like a great value stock at the moment.
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Is Alaska Air Group (ALK) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Alaska Air Group (ALK - Free Report) . ALK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 10.84. Over the past 52 weeks, ALK's Forward P/E has been as high as 16.28 and as low as 7.32, with a median of 8.87.
ALK is also sporting a PEG ratio of 0.41. 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 0.44. Over the last 12 months, ALK's PEG has been as high as 0.48 and as low as 0.41, with a median of 0.43.
Investors should also recognize that ALK has a P/B ratio of 1.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.27. ALK's P/B has been as high as 2.04 and as low as 1.29, with a median of 1.54, over the past year.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines also has a P/B ratio of 2.48 compared to its industry's price-to-book ratio of 3.27. Over the past year, its P/B ratio has been as high as 4.68, as low as 1.76, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alaska Air Group and United Airlines are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALK and UAL feels like a great value stock at the moment.