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Alaska Air Group (ALK) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Alaska Air Group (ALK - Free Report) ending at $67.44, denoting a +1.46% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.

The airline's shares have seen an increase of 4.84% over the last month, surpassing the Transportation sector's loss of 3.98% and the S&P 500's loss of 3.45%.

The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company is slated to reveal its earnings on January 23, 2025. The company is forecasted to report an EPS of $0.47, showcasing a 56.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.51 billion, up 37.55% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.89% increase. Alaska Air Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Alaska Air Group has a Forward P/E ratio of 11.2 right now. This signifies a premium in comparison to the average Forward P/E of 9.19 for its industry.

We can also see that ALK currently has a PEG ratio of 0.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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