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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
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Alaska Air Group (ALK - Free Report) ended the recent trading session at $38.65, demonstrating a -1.85% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.04% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.28%.
Shares of the airline witnessed a gain of 5.24% over the previous month, beating the performance of the Transportation sector with its gain of 4.15% and the S&P 500's gain of 5.01%.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. On that day, Alaska Air Group is projected to report earnings of -$1.11 per share, which would represent a year-over-year decline of 79.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.15 billion, indicating a 2.23% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.47 per share and revenue of $10.72 billion. These totals would mark changes of -1.32% and +2.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 16.22% fall in the Zacks Consensus EPS estimate. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 8.82. This represents a premium compared to its industry's average Forward P/E of 8.72.
We can also see that ALK currently has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.58 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alaska Air Group (ALK) Stock Sinks As Market Gains: Here's Why
Alaska Air Group (ALK - Free Report) ended the recent trading session at $38.65, demonstrating a -1.85% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.04% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.28%.
Shares of the airline witnessed a gain of 5.24% over the previous month, beating the performance of the Transportation sector with its gain of 4.15% and the S&P 500's gain of 5.01%.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. On that day, Alaska Air Group is projected to report earnings of -$1.11 per share, which would represent a year-over-year decline of 79.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.15 billion, indicating a 2.23% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.47 per share and revenue of $10.72 billion. These totals would mark changes of -1.32% and +2.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 16.22% fall in the Zacks Consensus EPS estimate. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 8.82. This represents a premium compared to its industry's average Forward P/E of 8.72.
We can also see that ALK currently has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.58 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.