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Alaska Air Group (ALK) Surpasses Market Returns: Some Facts Worth Knowing
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The latest trading session saw Alaska Air Group (ALK - Free Report) ending at $42.48, denoting a +1.72% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 0.8%, while the tech-heavy Nasdaq appreciated by 1.24%.
Heading into today, shares of the airline had gained 12.02% over the past month, outpacing the Transportation sector's gain of 0.33% and the S&P 500's gain of 0.48% in that time.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company is predicted to post an EPS of -$0.78, indicating a 25.81% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, down 0.86% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.62 per share and revenue of $10.72 billion, indicating changes of +1.99% and +2.79%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 7.74% 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 9.04. For comparison, its industry has an average Forward P/E of 8.83, which means Alaska Air Group is trading at a premium to the group.
One should further note that ALK currently holds a PEG ratio of 0.81. 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 Transportation - Airline industry currently had an average PEG ratio of 0.75 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ALK in the coming trading sessions, be sure to utilize Zacks.com.
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Alaska Air Group (ALK) Surpasses Market Returns: Some Facts Worth Knowing
The latest trading session saw Alaska Air Group (ALK - Free Report) ending at $42.48, denoting a +1.72% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 0.8%, while the tech-heavy Nasdaq appreciated by 1.24%.
Heading into today, shares of the airline had gained 12.02% over the past month, outpacing the Transportation sector's gain of 0.33% and the S&P 500's gain of 0.48% in that time.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company is predicted to post an EPS of -$0.78, indicating a 25.81% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, down 0.86% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.62 per share and revenue of $10.72 billion, indicating changes of +1.99% and +2.79%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 7.74% 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 9.04. For comparison, its industry has an average Forward P/E of 8.83, which means Alaska Air Group is trading at a premium to the group.
One should further note that ALK currently holds a PEG ratio of 0.81. 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 Transportation - Airline industry currently had an average PEG ratio of 0.75 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ALK in the coming trading sessions, be sure to utilize Zacks.com.