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Allegiant Travel (ALGT) Gains As Market Dips: What You Should Know

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In the latest trading session, Allegiant Travel (ALGT - Free Report) closed at $83.07, marking a +0.92% move from the previous day. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the travel services company had lost 11.84% over the past month, lagging the Transportation sector's loss of 2.4% and the S&P 500's gain of 2.08% in that time.

Allegiant Travel will be looking to display strength as it nears its next earnings release. On that day, Allegiant Travel is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 225.93%. Our most recent consensus estimate is calling for quarterly revenue of $589.11 million, up 5.14% from the year-ago period.

ALGT's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $2.56 billion. These results would represent year-over-year changes of +220.77% and +11.13%, respectively.

It is also important to note the recent changes to analyst estimates for Allegiant Travel. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.54% lower within the past month. Allegiant Travel currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Allegiant Travel currently has a Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 8.11, which means Allegiant Travel is trading at a premium to the group.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% 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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