We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alaska Air Group (ALK) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest market close, Alaska Air Group (ALK - Free Report) reached $35.07, with a -1.71% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
The airline's shares have seen a decrease of 10.85% over the last month, not keeping up with the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.
The upcoming earnings release of Alaska Air Group will be of great interest to investors. The company is expected to report EPS of $1.97, down 22.13% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.87 billion, indicating a 1.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and a revenue of $10.57 billion, representing changes of +28.05% and +9.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12.84% lower. Alaska Air Group currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Alaska Air Group is at present trading with a Forward P/E ratio of 6.4. For comparison, its industry has an average Forward P/E of 7.39, which means Alaska Air Group is trading at a discount to the group.
Investors should also note that ALK has a PEG ratio of 0.58 right now. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alaska Air Group (ALK) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Alaska Air Group (ALK - Free Report) reached $35.07, with a -1.71% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
The airline's shares have seen a decrease of 10.85% over the last month, not keeping up with the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.
The upcoming earnings release of Alaska Air Group will be of great interest to investors. The company is expected to report EPS of $1.97, down 22.13% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.87 billion, indicating a 1.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and a revenue of $10.57 billion, representing changes of +28.05% and +9.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12.84% lower. Alaska Air Group currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Alaska Air Group is at present trading with a Forward P/E ratio of 6.4. For comparison, its industry has an average Forward P/E of 7.39, which means Alaska Air Group is trading at a discount to the group.
Investors should also note that ALK has a PEG ratio of 0.58 right now. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.