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Alaska Air Group (ALK) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $40.11, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Prior to today's trading, shares of the airline had lost 12.57% over the past month. This has lagged the Transportation sector's loss of 5.36% and the S&P 500's gain of 0.64% in that time.
Wall Street will be looking for positivity from Alaska Air Group as it approaches its next earnings report date. On that day, Alaska Air Group is projected to report earnings of $2.48 per share, which would represent a year-over-year decline of 1.98%. Meanwhile, our latest consensus estimate is calling for revenue of $2.87 billion, up 1.58% from the prior-year quarter.
ALK's full-year Zacks Consensus Estimates are calling for earnings of $6.31 per share and revenue of $10.58 billion. These results would represent year-over-year changes of +45.06% and +9.66%, respectively.
Investors should also note any recent changes to analyst estimates for Alaska Air Group. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 4.34% lower. Alaska Air Group is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alaska Air Group is currently trading at a Forward P/E ratio of 6.41. Its industry sports an average Forward P/E of 8.48, so we one might conclude that Alaska Air Group is trading at a discount comparatively.
Also, we should mention that ALK has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alaska Air Group (ALK) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $40.11, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Prior to today's trading, shares of the airline had lost 12.57% over the past month. This has lagged the Transportation sector's loss of 5.36% and the S&P 500's gain of 0.64% in that time.
Wall Street will be looking for positivity from Alaska Air Group as it approaches its next earnings report date. On that day, Alaska Air Group is projected to report earnings of $2.48 per share, which would represent a year-over-year decline of 1.98%. Meanwhile, our latest consensus estimate is calling for revenue of $2.87 billion, up 1.58% from the prior-year quarter.
ALK's full-year Zacks Consensus Estimates are calling for earnings of $6.31 per share and revenue of $10.58 billion. These results would represent year-over-year changes of +45.06% and +9.66%, respectively.
Investors should also note any recent changes to analyst estimates for Alaska Air Group. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 4.34% lower. Alaska Air Group is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alaska Air Group is currently trading at a Forward P/E ratio of 6.41. Its industry sports an average Forward P/E of 8.48, so we one might conclude that Alaska Air Group is trading at a discount comparatively.
Also, we should mention that ALK has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.