Back to top

Image: Bigstock

Alaska Air Group (ALK) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

In the latest market close, Alaska Air Group (ALK - Free Report) reached $42.48, with a -0.47% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.9% for the day. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

The the stock of airline has risen by 12.85% in the past month, leading the Transportation sector's gain of 0.9% and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. On that day, Alaska Air Group is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 12.02%. In the meantime, our current consensus estimate forecasts the revenue to be $2.96 billion, indicating a 4.35% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.60 per share and a revenue of $10.75 billion, signifying shifts of +1.55% and +3.09%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Alaska Air Group. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 12.68% increase. Currently, Alaska Air Group is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Alaska Air Group has a Forward P/E ratio of 9.28 right now. This signifies a discount in comparison to the average Forward P/E of 10.03 for its industry.

One should further note that ALK currently holds a PEG ratio of 0.61. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.78.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alaska Air Group, Inc. (ALK) - free report >>

Published in