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Alaska Air Group (ALK) Suffers a Larger Drop Than the General Market: Key Insights

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Alaska Air Group (ALK - Free Report) closed at $35.28 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.85%.

Shares of the airline witnessed a loss of 9.48% over the previous month, trailing the performance of the Transportation sector with its loss of 1.39% and the S&P 500's gain of 1.52%.

Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. On that day, Alaska Air Group is projected to report earnings of $1.55 per share, which would represent a year-over-year decline of 15.3%. Our most recent consensus estimate is calling for quarterly revenue of $2.94 billion, up 3.52% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.08 per share and revenue of $10.74 billion, indicating changes of -9.93% and +3.01%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 2.44% lower. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Alaska Air Group is presently trading at a Forward P/E ratio of 8.75. This represents a discount compared to its industry's average Forward P/E of 9.97.

Investors should also note that ALK has a PEG ratio of 0.66 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.9 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 16% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ALK in the coming trading sessions, be sure to utilize Zacks.com.


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