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Alaska Air Group (ALK) Stock Drops Despite Market Gains: Important Facts to Note
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Alaska Air Group (ALK - Free Report) closed the latest trading day at $37.82, indicating a -1.02% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.39%.
The airline's shares have seen an increase of 1.84% over the last month, surpassing the Transportation sector's gain of 1.02% and falling behind the S&P 500's gain of 2.97%.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company's upcoming EPS is projected at -$0.86, signifying a 38.71% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 1.78% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.52 per share and a revenue of $10.7 billion, signifying shifts of -0.22% and +2.63%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.84% higher. Alaska Air Group presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 8.45. This represents a discount compared to its industry's average Forward P/E of 8.48.
Investors should also note that ALK has a PEG ratio of 0.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.73.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow ALK in the coming trading sessions, be sure to utilize Zacks.com.
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Alaska Air Group (ALK) Stock Drops Despite Market Gains: Important Facts to Note
Alaska Air Group (ALK - Free Report) closed the latest trading day at $37.82, indicating a -1.02% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.39%.
The airline's shares have seen an increase of 1.84% over the last month, surpassing the Transportation sector's gain of 1.02% and falling behind the S&P 500's gain of 2.97%.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company's upcoming EPS is projected at -$0.86, signifying a 38.71% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 1.78% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.52 per share and a revenue of $10.7 billion, signifying shifts of -0.22% and +2.63%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.84% higher. Alaska Air Group presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 8.45. This represents a discount compared to its industry's average Forward P/E of 8.48.
Investors should also note that ALK has a PEG ratio of 0.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.73.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow ALK in the coming trading sessions, be sure to utilize Zacks.com.