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Allegiant Travel (ALGT) Stock Sinks As Market Gains: What You Should Know

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Allegiant Travel (ALGT - Free Report) closed the most recent trading day at $75.27, moving -0.07% from the previous trading session. This change lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.45%.

Coming into today, shares of the travel services company had lost 14.56% in the past month. In that same time, the Transportation sector lost 3.22%, while the S&P 500 lost 1.38%.

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%. Our most recent consensus estimate is calling for quarterly revenue of $589.11 million, up 5.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.04 per share and revenue of $2.56 billion. These totals would mark changes of +220.77% and +11.13%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Allegiant Travel. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.32% lower within the past month. Allegiant Travel is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Allegiant Travel currently has a Forward P/E ratio of 7.5. For comparison, its industry has an average Forward P/E of 7.54, which means Allegiant Travel is trading at a discount to the group.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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