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Alaska Air (ALK) Reaches 52-Week High: What's Driving It?
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Shares of Alaska Air Group (ALK - Free Report) scaled a 52-week high of $54.47 in the trading session on Jul 07, 2023, before closing a tad lower at $53.75.
The company’s shares have gained 25.2% year to date, higher than 15.6% growth of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
On a shareholder-friendly note, Alaska Air’s management resumed share buybacks this year. The restrictions, under the CARES Act, prohibited airlines from paying dividends or buying back shares till Sep 30, 2022. The buybacks are being made under the $1-billion repurchase plan cleared by the board of directors in August 2015. In first-quarter 2023, ALK purchased 413,554 shares for $18 million. The company expects share repurchases of at least $100 million for 2023.
Continued recovery in air-travel demand bodes well for Alaska Air. On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce in 2023 to meet the anticipated high demand. ALK expects second-quarter 2023 total revenues to increase 2.5-5.5% from the second-quarter 2022 actuals. To match the upbeat demand, capacity in the June quarter is expected to expand 6-9%.
Zacks Rank & Stocks to Consider
Alaska Air currently carries a Zacks Rank #3 (Hold).
Copa Holdings has an expected earnings growth rate of 75.42% for the current year. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 25.5% over the past 90 days. Shares of CPA have soared 28.8% over the past six months.
Allegiant has an expected earnings growth rate of more than 100% for the current year. ALGT delivered a trailing four-quarter earnings surprise of 79.78%, on average.
The Zacks Consensus Estimate for ALGT’s current-year earnings has improved 46.5% over the past 90 days. Shares of ALGT have jumped 56.7% over the past six months.
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Alaska Air (ALK) Reaches 52-Week High: What's Driving It?
Shares of Alaska Air Group (ALK - Free Report) scaled a 52-week high of $54.47 in the trading session on Jul 07, 2023, before closing a tad lower at $53.75.
The company’s shares have gained 25.2% year to date, higher than 15.6% growth of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
On a shareholder-friendly note, Alaska Air’s management resumed share buybacks this year. The restrictions, under the CARES Act, prohibited airlines from paying dividends or buying back shares till Sep 30, 2022. The buybacks are being made under the $1-billion repurchase plan cleared by the board of directors in August 2015. In first-quarter 2023, ALK purchased 413,554 shares for $18 million. The company expects share repurchases of at least $100 million for 2023.
Continued recovery in air-travel demand bodes well for Alaska Air. On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce in 2023 to meet the anticipated high demand. ALK expects second-quarter 2023 total revenues to increase 2.5-5.5% from the second-quarter 2022 actuals. To match the upbeat demand, capacity in the June quarter is expected to expand 6-9%.
Zacks Rank & Stocks to Consider
Alaska Air currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies for investors interested in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) and Allegiant Travel Company (ALGT - Free Report) . Copa Holdings currently sports a Zacks Rank #1 (Strong Buy) and Allegiant is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 75.42% for the current year. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 25.5% over the past 90 days. Shares of CPA have soared 28.8% over the past six months.
Allegiant has an expected earnings growth rate of more than 100% for the current year. ALGT delivered a trailing four-quarter earnings surprise of 79.78%, on average.
The Zacks Consensus Estimate for ALGT’s current-year earnings has improved 46.5% over the past 90 days. Shares of ALGT have jumped 56.7% over the past six months.