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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
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Alaska Air Group (ALK - Free Report) ended the recent trading session at $37.39, demonstrating a -1.81% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.9%.
The the stock of airline has risen by 6.28% in the past month, leading the Transportation sector's gain of 2.67% and the S&P 500's gain of 3.85%.
The upcoming earnings release of Alaska Air Group will be of great interest to investors. It is anticipated that the company will report an EPS of -$1.11, marking a 79.03% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.15 billion, indicating a 2.23% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.47 per share and revenue of $10.72 billion, indicating changes of -1.32% and +2.86%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.71% increase. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 8.53. Its industry sports an average Forward P/E of 8.54, so one might conclude that Alaska Air Group is trading at a discount comparatively.
Meanwhile, ALK's PEG ratio is currently 0.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ALK's industry had an average PEG ratio of 0.58 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
Alaska Air Group (ALK - Free Report) ended the recent trading session at $37.39, demonstrating a -1.81% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.9%.
The the stock of airline has risen by 6.28% in the past month, leading the Transportation sector's gain of 2.67% and the S&P 500's gain of 3.85%.
The upcoming earnings release of Alaska Air Group will be of great interest to investors. It is anticipated that the company will report an EPS of -$1.11, marking a 79.03% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.15 billion, indicating a 2.23% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.47 per share and revenue of $10.72 billion, indicating changes of -1.32% and +2.86%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.71% increase. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 8.53. Its industry sports an average Forward P/E of 8.54, so one might conclude that Alaska Air Group is trading at a discount comparatively.
Meanwhile, ALK's PEG ratio is currently 0.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ALK's industry had an average PEG ratio of 0.58 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.