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Alaska Air Group (ALK) Gains As Market Dips: What You Should Know

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Alaska Air Group (ALK - Free Report) closed the most recent trading day at $37.08, moving +0.68% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the airline had lost 12.25% over the past month. This has lagged the Transportation sector's loss of 4.76% and the S&P 500's loss of 2.86% in that time.

Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $2.29 per share. This would mark a year-over-year decline of 9.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.87 billion, up 1.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.03 per share and revenue of $10.57 billion, which would represent changes of +38.62% and +9.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 8.59% lower. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Alaska Air Group has a Forward P/E ratio of 6.11 right now. This represents a discount compared to its industry's average Forward P/E of 8.07.

Meanwhile, ALK's PEG ratio is currently 0.47. 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. ALK's industry had an average PEG ratio of 0.32 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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.

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