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Alaska Air Group (ALK) Stock Moves -0.33%: What You Should Know

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Alaska Air Group (ALK - Free Report) closed the most recent trading day at $54.16, moving -0.33% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 0.62%.

Shares of the airline have appreciated by 6.55% over the course of the past month, outperforming the Transportation sector's loss of 2.86% and the S&P 500's gain of 2.85%.

The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. In that report, analysts expect Alaska Air Group to post earnings of $0.36 per share. This would mark year-over-year growth of 20%. Simultaneously, our latest consensus estimate expects the revenue to be $3.44 billion, showing a 34.57% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.26 per share and revenue of $11.64 billion, which would represent changes of -5.96% and +11.61%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. At present, Alaska Air Group boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 12.74. This expresses a premium compared to the average Forward P/E of 11 of its industry.

One should further note that ALK currently holds a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Transportation - Airline industry stood at 1.21 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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