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Alaska Air Group (ALK) Gains As Market Dips: What You Should Know
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Alaska Air Group (ALK - Free Report) closed at $40.54 in the latest trading session, marking a +0.5% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.
Heading into today, shares of the airline had lost 14.53% over the past month, lagging the Transportation sector's loss of 4.85% and the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $2.57 per share. This would mark year-over-year growth of 1.58%. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 1.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.59 per share and revenue of $10.58 billion, which would represent changes of +51.49% and +9.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Alaska Air Group currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 6.12. For comparison, its industry has an average Forward P/E of 8.58, which means Alaska Air Group is trading at a discount to the group.
Also, we should mention that ALK has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alaska Air Group (ALK) Gains As Market Dips: What You Should Know
Alaska Air Group (ALK - Free Report) closed at $40.54 in the latest trading session, marking a +0.5% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.
Heading into today, shares of the airline had lost 14.53% over the past month, lagging the Transportation sector's loss of 4.85% and the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $2.57 per share. This would mark year-over-year growth of 1.58%. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 1.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.59 per share and revenue of $10.58 billion, which would represent changes of +51.49% and +9.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Alaska Air Group currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 6.12. For comparison, its industry has an average Forward P/E of 8.58, which means Alaska Air Group is trading at a discount to the group.
Also, we should mention that ALK has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.