Yahoo Finance Alaska Air Group (ALK) Declines More Than Market: Some Information for Investors
Alaska Air Group (ALK) closed the most recent trading day at $41.34, moving -0.41% from the previous trading session. This change lagged the S&P 500's 0.25% loss on the day. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.79%.
Heading into today, shares of the airline had lost 4.79% over the past month, outpacing the Transportation sector's loss of 4.81% and lagging the S&P 500's gain of 3.59% in that time.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. The company is predicted to post an EPS of $2.37, indicating a 21% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.98 billion, showing a 5.16% escalation compared to the year-ago quarter.
ALK's full-year Zacks Consensus Estimates are calling for earnings of $4.69 per share and revenue of $10.93 billion. These results would represent year-over-year changes of +3.53% and +4.84%, respectively.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Alaska Air Group is currently a Zacks Rank #2 (Buy).
With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 8.86. This expresses a premium compared to the average Forward P/E of 8.85 of its industry.
We can also see that ALK currently has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.83 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
