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Are Investors Undervaluing Alaska Air Group (ALK) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Alaska Air Group (ALK - Free Report) . ALK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 15.97. Over the last 12 months, ALK's Forward P/E has been as high as 9.26 and as low as 5.47, with a median of 7.64.
ALK is also sporting a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALK's PEG compares to its industry's average PEG of 0.74. Over the last 12 months, ALK's PEG has been as high as 0.90 and as low as 0.25, with a median of 0.55.
We should also highlight that ALK has a P/B ratio of 1.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.44. Over the past 12 months, ALK's P/B has been as high as 1.82 and as low as 0.97, with a median of 1.25.
Finally, investors will want to recognize that ALK has a P/CF ratio of 7.22. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.43. Over the past year, ALK's P/CF has been as high as 14.05 and as low as 5.79, with a median of 7.35.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a # 1 (Strong Buy) stock with a Value grade of A.
SkyWest is currently trading with a Forward P/E ratio of 10.72 while its PEG ratio sits at 0.89. Both of the company's metrics compare favorably to its industry's average P/E of 15.97 and average PEG ratio of 0.74.
Over the past year, SKYW's P/E has been as high as 210.13, as low as 9.59, with a median of 10.75; its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.55 during the same time period.
Additionally, SkyWest has a P/B ratio of 1.47 while its industry's price-to-book ratio sits at 3.44. For SKYW, this valuation metric has been as high as 1.50, as low as 0.71, with a median of 0.95 over the past year.
These are just a handful of the figures considered in Alaska Air Group and SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALK and SKYW is an impressive value stock right now.
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Are Investors Undervaluing Alaska Air Group (ALK) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Alaska Air Group (ALK - Free Report) . ALK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 15.97. Over the last 12 months, ALK's Forward P/E has been as high as 9.26 and as low as 5.47, with a median of 7.64.
ALK is also sporting a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALK's PEG compares to its industry's average PEG of 0.74. Over the last 12 months, ALK's PEG has been as high as 0.90 and as low as 0.25, with a median of 0.55.
We should also highlight that ALK has a P/B ratio of 1.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.44. Over the past 12 months, ALK's P/B has been as high as 1.82 and as low as 0.97, with a median of 1.25.
Finally, investors will want to recognize that ALK has a P/CF ratio of 7.22. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.43. Over the past year, ALK's P/CF has been as high as 14.05 and as low as 5.79, with a median of 7.35.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a # 1 (Strong Buy) stock with a Value grade of A.
SkyWest is currently trading with a Forward P/E ratio of 10.72 while its PEG ratio sits at 0.89. Both of the company's metrics compare favorably to its industry's average P/E of 15.97 and average PEG ratio of 0.74.
Over the past year, SKYW's P/E has been as high as 210.13, as low as 9.59, with a median of 10.75; its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.55 during the same time period.
Additionally, SkyWest has a P/B ratio of 1.47 while its industry's price-to-book ratio sits at 3.44. For SKYW, this valuation metric has been as high as 1.50, as low as 0.71, with a median of 0.95 over the past year.
These are just a handful of the figures considered in Alaska Air Group and SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALK and SKYW is an impressive value stock right now.