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Alaska Air Group (ALK) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Alaska Air Group (ALK - Free Report) ending at $65.52, denoting a +1.74% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.

The airline's stock has climbed by 18.91% in the past month, exceeding the Transportation sector's loss of 6% and the S&P 500's loss of 1.7%.

Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.47, showcasing a 56.67% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.5 billion, reflecting a 36.91% rise from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.91% upward. Right now, Alaska Air Group possesses a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 11.02. This denotes a premium relative to the industry's average Forward P/E of 9.18.

One should further note that ALK currently holds a PEG ratio of 0.65. 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. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.75.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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