In the latest trading session, Alaska Air Group (ALK) closed at $45.10, marking a -0.04% move from the previous day. This change lagged the S&P 500’s daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the airline had gained 5% in the past month. In that same time, the Transportation sector lost 0.39%, while the S&P 500 gained 2.12%.
Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. On that day, Alaska Air Group is projected to report earnings of $2.49 per share, which would represent year-over-year growth of 13.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.77 billion, up 4.08% from the year-ago period.
ALK’s full-year Zacks Consensus Estimates are calling for earnings of $6.30 per share and revenue of $10.49 billion. These results would represent year-over-year changes of +44.83% and +8.8%, respectively.
Any recent changes to analyst estimates for Alaska Air Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alaska Air Group is currently trading at a Forward P/E ratio of 7.16. This valuation marks a discount compared to its industry’s average Forward P/E of 8.72.
It is also worth noting that ALK currently has a PEG ratio of 0.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Transportation – Airline industry currently had an average PEG ratio of 0.33 as of yesterday’s close.
The Transportation – Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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