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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
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In the latest market close, Alaska Air Group (ALK - Free Report) reached $41.62, with a -0.17% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the airline have appreciated by 18.17% over the course of the past month, outperforming the Transportation sector's gain of 2.16% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. It is anticipated that the company will report an EPS of $1.97, marking a 7.65% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.96 billion, reflecting a 4.38% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.62 per share and a revenue of $10.75 billion, demonstrating changes of +1.99% and +3.11%, respectively, from the preceding year.
Any recent changes to analyst estimates for Alaska Air Group should also be noted by investors. 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 13.08% higher. Alaska Air Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 9.03. This expresses a discount compared to the average Forward P/E of 10.22 of its industry.
It's also important to note that ALK currently trades at a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ALK's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
In the latest market close, Alaska Air Group (ALK - Free Report) reached $41.62, with a -0.17% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the airline have appreciated by 18.17% over the course of the past month, outperforming the Transportation sector's gain of 2.16% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. It is anticipated that the company will report an EPS of $1.97, marking a 7.65% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.96 billion, reflecting a 4.38% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.62 per share and a revenue of $10.75 billion, demonstrating changes of +1.99% and +3.11%, respectively, from the preceding year.
Any recent changes to analyst estimates for Alaska Air Group should also be noted by investors. 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 13.08% higher. Alaska Air Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 9.03. This expresses a discount compared to the average Forward P/E of 10.22 of its industry.
It's also important to note that ALK currently trades at a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ALK's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.