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Allegiant Travel (ALGT) Dips More Than Broader Markets: What You Should Know

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Allegiant Travel (ALGT - Free Report) closed the most recent trading day at $85.72, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.

Coming into today, shares of the travel services company had lost 20.56% in the past month. In that same time, the Transportation sector lost 5.14%, while the S&P 500 lost 0.12%.

Allegiant Travel will be looking to display strength as it nears its next earnings release. In that report, analysts expect Allegiant Travel to post earnings of $0.68 per share. This would mark year-over-year growth of 225.93%. Meanwhile, our latest consensus estimate is calling for revenue of $589.11 million, up 5.14% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.04 per share and revenue of $2.56 billion, which would represent changes of +220.77% and +11.13%, respectively, from the prior year.

Any recent changes to analyst estimates for Allegiant Travel should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 4.65% lower. Allegiant Travel is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Allegiant Travel has a Forward P/E ratio of 8.57 right now. For comparison, its industry has an average Forward P/E of 8.6, which means Allegiant Travel is trading at a discount to the group.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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