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Alaska Air Group (ALK) Flat As Market Gains: What You Should Know

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Alaska Air Group (ALK - Free Report) closed the latest trading day at $39.80, indicating no change from the previous session's end. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.

The airline's stock has climbed by 15.06% in the past month, exceeding the Transportation sector's gain of 2.83% and the S&P 500's gain of 2.54%.

Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.55, signifying a 15.3% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 3.6% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.06 per share and a revenue of $10.73 billion, signifying shifts of -10.38% and +2.92%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Alaska Air Group is presently trading at a Forward P/E ratio of 9.8. Its industry sports an average Forward P/E of 9.75, so one might conclude that Alaska Air Group is trading at a premium comparatively.

One should further note that ALK currently holds a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.96.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 20% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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