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Alaska Air Group (ALK) Declines More Than Market: Some Information for Investors

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Alaska Air Group (ALK - Free Report) closed the latest trading day at $45.54, indicating a -0.15% change from the previous session's end. This change lagged the S&P 500's 0.03% loss on the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.56%.

Prior to today's trading, shares of the airline had gained 2.61% over the past month. This has outpaced the Transportation sector's loss of 2.35% and the S&P 500's gain of 1.39% in that time.

The upcoming earnings release of Alaska Air Group will be of great interest to investors. In that report, analysts expect Alaska Air Group to post earnings of $2.20 per share. This would mark year-over-year growth of 20.22%. At the same time, our most recent consensus estimate is projecting a revenue of $2.99 billion, reflecting a 5.21% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.24 per share and a revenue of $10.75 billion, representing changes of -6.4% and +3.15%, respectively, from the prior year.

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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 9.64% fall in the Zacks Consensus EPS estimate. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 10.75. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 10.75.

Meanwhile, ALK's PEG ratio is currently 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.88.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.

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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