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Alaska Air Group (ALK) Increases Despite Market Slip: Here's What You Need to Know

In the latest trading session, Alaska Air Group (ALK) closed at $35.67, marking a +0.28% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.39% for the day. Meanwhile, the Dow experienced a drop of 0.19%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

The airline's stock has climbed by 7.27% in the past month, exceeding the Transportation sector's gain of 7% and the S&P 500's gain of 5.08%.

The upcoming earnings release of Alaska Air Group will be of great interest to investors. The company's upcoming EPS is projected at $0.20, signifying a 78.26% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, up 2.91% from the prior-year quarter.

ALK's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $10.42 billion. These results would represent year-over-year changes of +1.84% and +8.07%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Alaska Air Group is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 8.03. This signifies a premium in comparison to the average Forward P/E of 6.52 for its industry.

Also, we should mention that ALK has a PEG ratio of 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ALK's industry had an average PEG ratio of 0.29 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report

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