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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.